What is a financial transaction?

Any change of finances at least two businesses or individuals can be a financial transaction. Financial transactions take place when someone decides to submit a payment in exchange for asset. In accounting, the transaction is considered to be a financial transaction only if it only includes money as opposed to the purchase in which the money is exchanged for good or service. Examples of this type of financial transaction include lending money and storing money in a check or savings account. The flow of money between the two accounts within the organization can also be called a transaction, if I treat them as such, it helps society exactly to monitor its finances.

There are three main types of transactions. Most people are most comfortable with product transactions that monitor the purchase and sale of products. Purchase of rubber packaging is a product transaction between chewing gums with a mixed goods trade from which the rubber will be purchased.

distribution transactions monitor how money is distributed to workers, manufacturing process and government.An example of a distribution transaction is the payout of the GUM Company for workers in the rubber factory. Turnover tax and income tax are also recorded as distribution transactions.

Financial transaction is a wider category than the first two. It is any profit of assets or financial obligations. Financial transactions can be purely financial. Financial transactions are more often a financial transaction hybrid and one of the other two types of transactions.

The loan is a perfect example of a purely financial transaction. The debtor requires a certain amount of money to obtain a great purpose, such as a car. The creditor pays the lump sum. During the months or years of the debtor Reoto's money with interest. The net value of the debtor and the creditor changes several times during this transaction, but nothing will change their hands except the currency.

Buying this package with credit card is an example of combined financial and product transactions. The shop for comfort gives the EVAGuma. To pay for it, he requested a small loan with a financial institution that issued his credit card. Chewer Gums will sign a confirmation that will communicate credit cards to pay the trade with a favorable gum value. The product transaction is therefore carried out between chewing rubber and mixed trade, but the financial transaction takes place between the two and the financial institution.