![\"events-1\"](\"http:\/\/scp-ph.com\/blogsite\/wp-content\/uploads\/2018\/12\/events-1-300x150.jpg\")
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A business event in accounting is also known as business transactions which basically means an exchange of value between two different groups. The exchange is usually called an event when it impacts the accounting equation in one way or another. A business transaction or event occurs when the assets, liabilities, or owner\u2019s equity of a company is changed.<\/p>\n
One good example is a purchased of goods, wherein you pay for your purchase and leave with your bag of groceries, that\u2019s how business transactions works. An event always impacts the accounting equation of a company because it is an exchange of financial statement elements for other financial statement elements. It also an example of an external events.<\/p>\n
Events can also occur within a single company and called as an Internal event. Transferring good from storage to assembly plant is a good example. The raw materials in storage are transferred to the production floor where they turn into goods in process inventory. The asset accounts are affected, and the change is measurable. All events are recorded in the accounting system as a general journal entry. One account is debited, and the other account is credited as per the double entry accounting method. In our inventory example, the inventory account would be debited and while the cash account was credited.<\/p>\n
Not all business happenings are considered events. Signing of production contract or lease agreement doesn\u2019t usually change the accounting equation in a way so it is not considered as a business event.<\/p>\n
Other examples of Business Events:<\/p>\n
Key Difference Between Transaction and Event<\/strong><\/p>\n Sources:<\/p>\n https:\/\/www.myaccountingcourse.com\/accounting-basics\/business-events<\/a><\/p>\n https:\/\/www.myaccountingcourse.com\/accounting-dictionary\/events<\/a><\/p>\n\n