Ans. A financial transaction is an agreement, or communication, that is carried out between a buyer and a seller in exchange for an asset for payment. The financial transaction involves a change in the status of the finances of two or more businesses or between individuals. It is still also a transaction if the goods are exchanged at a different time, and the money at another time. Financial transactions include cash receipts, deposit corrections, requisitions, and purchase orders, invoices, travel expense reports.