What does Accounting Event Mean?
A transaction or change recognized on the financial statement of an accounting. Accounting events can be either external or internal. An external transaction would occur with an outside party, such as the purchase or sales of a goods. An internal transaction would involve changes in the accounting entity's records, such as adjusting an account on the financial statement.
An accounting events is any financial event that would impact the accounting balance of a company's financial statement. Every time the company uses or receives cash, or adjusts an entry in it's Accounting records, an accounting event has occurred.
ALL TRANSACTION ARE EVENT BUT ALL EVENTS ARE NOT TRANSACTION
Before explaining this statement we have to know what is an event and what is a transaction. Event. In general some happening are called event. It changes the status of a person, a community a country and organization or a substance. The consequences of anything, the issue, conclusion result that in which an action, operation, or series of operation terminates.
Transaction
* An economic event is called as a transaction.
* An agreement between a buyer and a seller to exchange an asset for payment.
*In Accounting, any event or condition recorded in the books of Accounts.
* A try is any process a user performs after successfully logging in example of transaction are making a purchase,bill pay, money transfer, stock trade address change and other
* With each type of transaction, different types of details are involved for example in a stock trade, the data involved would be be the symbol, unit price, numb of shares, buy or sell action, time of trade, total amount, broker commission and so on
Transaction is an event. All events are not accounting transactions. An event must have the following features to become a transaction.
1. There must be two parties
No transaction is possible without two parties.just as it takes two hands to clap, so it taked two parties for a transaction to take place. There cannot be a giver unless there is a reciver.
2. The event must ne masurable in terms of money
An event will not be regarded asa transaction, unless it is capable of being measured in terms of money.
3. The event must result in transfer of property or service
Suppose we buy a motor car from s for RS 40000.the Result in transfer of property from s to us, so it is a transaction. Again support it, we pay salary to our employees 2000. This result in transfer of service the employee renders service and we receive it. So it is a transaction.
4.the event must change the financial position of the business.
A. Quantitative change
This changes the total of assets and liabilities of a business concern. Suppose machinery of 50000 is destroyed. This reduces the total value of the adsas of business. As a result the financial position changes and hence it is a transaction.
B.qualitative change
This causes increase or decrease In the different element of assets or less liabilities, but the value of total assets and total liabuliabil remains unchanged.suppose we buy machinery worth 50000.this result in exchy of properties cash 50000 get es out of our possession and at the same time machinery of an equal value comes into our possession. This doesn't change the total value of our asdas, but this causes a qualitative change in our financial position, hence it is a transaction.
A transaction or change recognized on the financial statement of an accounting. Accounting events can be either external or internal. An external transaction would occur with an outside party, such as the purchase or sales of a goods. An internal transaction would involve changes in the accounting entity's records, such as adjusting an account on the financial statement.
An accounting events is any financial event that would impact the accounting balance of a company's financial statement. Every time the company uses or receives cash, or adjusts an entry in it's Accounting records, an accounting event has occurred.
ALL TRANSACTION ARE EVENT BUT ALL EVENTS ARE NOT TRANSACTION
Before explaining this statement we have to know what is an event and what is a transaction. Event. In general some happening are called event. It changes the status of a person, a community a country and organization or a substance. The consequences of anything, the issue, conclusion result that in which an action, operation, or series of operation terminates.
Transaction
* An economic event is called as a transaction.
* An agreement between a buyer and a seller to exchange an asset for payment.
*In Accounting, any event or condition recorded in the books of Accounts.
* A try is any process a user performs after successfully logging in example of transaction are making a purchase,bill pay, money transfer, stock trade address change and other
* With each type of transaction, different types of details are involved for example in a stock trade, the data involved would be be the symbol, unit price, numb of shares, buy or sell action, time of trade, total amount, broker commission and so on
Transaction is an event. All events are not accounting transactions. An event must have the following features to become a transaction.
1. There must be two parties
No transaction is possible without two parties.just as it takes two hands to clap, so it taked two parties for a transaction to take place. There cannot be a giver unless there is a reciver.
2. The event must ne masurable in terms of money
An event will not be regarded asa transaction, unless it is capable of being measured in terms of money.
3. The event must result in transfer of property or service
Suppose we buy a motor car from s for RS 40000.the Result in transfer of property from s to us, so it is a transaction. Again support it, we pay salary to our employees 2000. This result in transfer of service the employee renders service and we receive it. So it is a transaction.
4.the event must change the financial position of the business.
A. Quantitative change
This changes the total of assets and liabilities of a business concern. Suppose machinery of 50000 is destroyed. This reduces the total value of the adsas of business. As a result the financial position changes and hence it is a transaction.
B.qualitative change
This causes increase or decrease In the different element of assets or less liabilities, but the value of total assets and total liabuliabil remains unchanged.suppose we buy machinery worth 50000.this result in exchy of properties cash 50000 get es out of our possession and at the same time machinery of an equal value comes into our possession. This doesn't change the total value of our asdas, but this causes a qualitative change in our financial position, hence it is a transaction.
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