Which of the following types of nonexchange transactions recognize revenue when all the eligibility requirements are met?
A) Voluntary nonexchange transactions.
B) Imposed nonexchange transactions.
C) Derived tax revenues.
D) Property tax revenues.

Question

Quizplus · Accepted Answer

Voluntary nonexchange transactions recognize revenue when all eligibility requirements are met. This is because there is no direct exchange involved between the parties, making it easier to determine when revenue can be recognized. Imposed nonexchange transactions, on the other hand, recognize revenue when the resources are provided or when there is an enforceable claim, regardless of eligibility requirements. Derived tax revenues and property tax revenues are exchange transactions and therefore do not apply to this question.

Which of the Following Types of Nonexchange Transactions Recognize Revenue