Accredited ACH Professional (AAP) Practice Exam

Which of the following best defines the term 'business transaction'?

1. A financial or legal agreement between two parties

2. An exchange between a buyer and a seller

3. A record of company expenses

4. An internal request for information

The correct answer is: An exchange between a buyer and a seller

The term 'business transaction' is best defined as an exchange between a buyer and a seller. This definition captures the essence of a business transaction, which involves the transfer of goods, services, or assets for compensation. Transactions typically occur in a commercial context where both parties aim to fulfill specific economic objectives, whether it's a sale, a purchase, or a service rendered. In contrast, while a financial or legal agreement between two parties may outline the terms of a transaction, it does not itself constitute the transaction. Similarly, a record of company expenses is a form of documentation related to transactions but does not define the transaction itself. Lastly, an internal request for information is not a transaction; it pertains to communication within an organization rather than an exchange of value between parties. Thus, the choice that captures the core element of a business transaction is the one describing the exchange between a buyer and a seller.