Which of the following transactions is classified as an exchange 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 are an example of an exchange transaction because the users of the airport are paying for the service provided by the city. The other options are not exchange transactions: property taxes are a form of taxation, bequests are gifts, and state grants are a form of government funding.

Which of the Following Transactions Is Classified as an Exchange