A transaction is a finalized agreement between a buyer and a seller, but it can get a bit more complicated from an accounting perspective.

The note corresponds to a debit note in an accounting log, serving as a record of a revision. Business-to-business transactions use both debit and credit notes.

Cash and accrual accounting methods are among the most common methods of accounting, according to the IRS. The IRS Publication 538 (01/2022), Accounting Periods and Methods breaks down the two ...