Accounting transaction consists of four data elements. Three of them are account, accounting code, and date of transaction.

Identify the fourth data element from the option given below:

Amount

The correct answer is Option (2) → Amount

The fourth data element in an accounting transaction is "Amount."

Various elements (items) of accounting transactions are essentially the data items, which are processed through an accounting software to generate different sets of information in the form of accounting reports such as journals, ledger, etc. A data-item (data element) is the smallest named unit of data in the information system. In accounting, a transaction consists of four data elements, such as name of account, accounting code, date of transaction and amount.