A business transaction is an exchange between two or more parties that involves the transfer of goods, services, or funds. These transactions can occur in various forms, such as sales, purchases, or contracts, and are essential for the operation of any business. Each transaction is typically documented to ensure clarity and accountability. In accounting, business transactions are recorded in financial statements to reflect the company's performance and financial position. This includes tracking revenues, expenses, and assets. Proper documentation and recording of these transactions are crucial for compliance with regulations and for making informed business decisions.