Multiple choice

On March 31, 2006 Amit purchased a typewriter from Arvind for Rs. 8,000. This is

  1. an event.

  2. a transaction.

  3. a transaction as well as an event.

  4. neither a transaction nor an event.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Transaction involves exchange/transfer of value between parties. Amit paying Rs 8,000 to Arvind for typewriter is exchange of money for goods - clearly a transaction. Event is happening that may affect accounting equation but doesn't involve exchange. This purchase is specifically a transaction (B), not 'transaction as well as event' - in accounting classification, these are mutually exclusive categories.

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