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A transaction is an exchange of belongings or services amid two or more parties. Transactions can be classified in many ways, but some of the most common classifications include:.

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Cash transactions: These are transactions in which payment is made in cash at the time of the transaction.

Credit transactions: These are transactions in which payment is made after a set period of time, also known as the credit period.

Internal transactions: These are transactions that occur within an organization, such as the transfer of goods or services from one department to another.

External transactions: These are transactions that occur between an organization and an external party, such as a customer or supplier.

Business transactions: These are transactions that are related to the business activities of an organization, such as the sale of goods or services.

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