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Financial Management for F&B Business #5 – Business Transactions

Business transactions are of two (2) types: those involving cash exchange and those not involving cash.

Business transactions are of two (2) types: those involving cash exchange and those not involving cash.

Cash Business Transactions

Business transactions in food stalls and restaurants involve cash exchanges, such as when purchasing goods from suppliers. Similarly, customer payments for ordered food and drinks are also part of cash transactions.

Non-Cash Transactions

Non-cash transactions also occur in food stalls and restaurants. Examples include:

  • Equipment wears out over time, and its value decreases according to the current market price. Adjustments for these decreasing values are called depreciation.
  • Accounts receivable for debts that cannot be collected (bad debt).

All these transactions must be recorded—whether they involve cash or depreciation in business value.

Nazri Ahmad

Published by
Nazri Ahmad

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