An accounting event is a financial event that would change the account balances in financial statements of a business. Any event that brings financial changes in the company and needs to record in the book.
Accounting Transaction is a is recorded to maintain liabilities, owner’s equity, revenue or expense of event and there are several types of Transaction.
Understanding the difference between transaction and event is required in accounting to properly record financial events of a business. The main difference between them is that all events are not transactions and all transactions are events.
Accounting Equation indicates that for every debit there must be an equal credit. assets, liabilities and owners’ equity are the three components of it. Accounting equation suggests that for every debit there must be a credit. Accounting is a way of getting information about the transactions and events within the business in reports that are…