Non-cash transactions refer to financial activities that do not involve the physical exchange of cash. Instead, these transactions can include methods such as credit card payments, electronic fund transfers, and checks. They are commonly used in everyday purchases and business operations, allowing for more convenient and secure payment options. These transactions are recorded in accounting systems to reflect the movement of money without actual cash changing hands. For example, when a customer uses a credit card to buy a product, the merchant receives payment electronically, while the customer’s bank processes the transaction, ensuring that funds are transferred appropriately.