A transaction is an exchange between two parties where something of value is given in return for something else. This can involve money, goods, or services. For example, when you buy a coffee at a café, you give money to the barista, and in return, you receive a delicious drink. Each transaction is recorded to keep track of what was exchanged. In the world of finance, transactions are crucial for businesses and individuals alike. They help maintain accurate records of income and expenses. For instance, when a company sells products, it creates a transaction that impacts its financial statements and overall profitability. Understanding transactions is essential for effective money management.