What do you understand by transaction?

A transaction refers to an exchange or transfer of goods, services, or funds between parties, typically involving a buyer and a seller. It can occur in various forms, such as cash payments, credit card purchases, or digital transfers. Transactions are fundamental to economic activity and can be recorded in financial systems to track revenue, expenses, and overall financial health. In a broader sense, transactions also encompass any agreement or interaction that results in a change of ownership or status.