Accounting transactions are events that affect the financial position of a business and can be measured in monetary terms. These transactions can include sales, purchases, payments, and receipts. Each transaction is recorded in the accounting system to ensure accurate financial reporting. Every accounting transaction involves at least two accounts, following the principle of double-entry bookkeeping. For example, when a business sells a product, it increases its revenue account and simultaneously increases its cash or accounts receivable account. This systematic recording helps maintain the integrity of financial statements and provides a clear picture of the company's financial health.