Business Transactions MCQs

True Tamplin

Written by True Tamplin, BSc, CEPF®
Updated on July 22, 2022

This set of multiple choice questions (MCQs) focuses on business transactions, helping students in accounting and finance prepare for their exams and interviews.

This MCQ test consists of 13 multiple choice questions with 4 options for each question. Students need to choose one correct answer to move to the next question.

If you find it difficult to answer these MCQs, we recommend studying the articles on business transactions and analysis of business transactions from our explanation section.

If you’re ready to take the test, let’s start!

Business/Financial Transactions Multiple Choice Questions (MCQs) Test.

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Frequently Asked Questions

What is a business transaction?

A business transaction is an economic event that affects the financial position of a business. Business transactions can be categorized as either revenue or expense items. Revenue items increase the assets of a business, while expense items reduce the assets of a business. The recording of business transactions is what creates the Financial Statements of a company.

What are the four most common types of transactions?

For a business transaction to be recorded in accounting, it must meet four basic criteria: It must involve an exchange of something of value. The exchange must have occurred between two or more entities. The exchanged items must have different Financial Statement effects. Lastly, the exchange must be measurable and identifiable.

What are the four most common types of transactions?

What are the four most common types of transactions?

How do you analyze business transactions?

Analysis of business transactions involves the following four steps: First, ascertaining the accounts involved in the transaction, ascertaining the nature of the accounts involved in the transaction, determining the effects (i.e., in terms of increases and decreases in the accounts) and lastly, applying the rules of debit and credit.

What is an example of a business transaction?

Examples of business transactions are: buying insurance from an insurer, buying inventory from a supplier, selling goods to a customer for cash.

True Tamplin, BSc, CEPF®

About the Author
True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.