Which of the following transactions is classified as an exchange transaction rather than a nonexchange transaction?
A) Property taxes.
B) Fees charged by a municipal airport.
C) Bequest left to the city by a wealthy citizen.
D) State grant to conduct an after school program for children.

Question

Quizplus · Accepted Answer

Fees charged by a municipal airport would be classified as an exchange transaction since the airport is providing a service in exchange for the fees paid by the users. The other options (property taxes, bequest, state grant) are all nonexchange transactions since there is no direct exchange of goods or services for the resources received.

Which of the Following Transactions Is Classified as an Exchange