Transaction

A Transaction is a specific instance of an exchange, agreement, or interaction involving the transfer of something, such as money, goods, services, or information, between two or more parties. It is a fundamental concept in economics, business, and computing, representing a single unit of activity with a defined beginning and end. Transactions often involve a financial exchange, but they can also encompass non-monetary interactions. Crucially, a valid Transaction is typically considered to be atomic, meaning it either completes entirely or fails completely, preserving data integrity and ensuring consistency. They are often recorded and tracked for auditing and analysis purposes, reflecting the movement of value or resources within a system.

Transaction meaning with examples

• After careful consideration, Sarah and David concluded a Transaction to purchase a new home. They had signed a purchase agreement and transferred the agreed-upon price to the seller, and obtained the keys to the new home. The Transaction included a mortgage from their bank to complete the total sale. This complex Transaction represents the culmination of months of planning and financial negotiation.
• The company recorded the Transaction as the sale of 100 widgets to a retailer. This involved updating its inventory system, creating an invoice, and tracking the payment received. The Transaction generated revenue for the company and increased the retailer's stock. This straightforward Transaction represents the exchange of goods for money, essential for maintaining profit within the company.
• During online shopping, Mark initiated a transaction. He selected items, added them to his cart, and entered his payment information to place his order. The web server processed his information, and upon successful validation, completed his order by charging his credit card. The successful Transaction resulted in the delivery of the goods purchased within the estimated timeframe.
• The accounting department documented a financial Transaction of transferring funds from the company's operating account to its investment account. They prepared journal entries to reflect the debit and credit sides of this movement and adjusted the balances of the two accounts accordingly. This inter-account Transaction aimed to re-allocate capital within the company’s financial holdings.