When examining revenue transactions,which of the following transactions is classified as an exchange transaction?
A)When a homeowner pays property taxes
B)When a university receives a federal grant that mandates a certain type of research activity
C)When an aquatic center receives cash for a group swim
D)When an employer deducts money for state tax withholding

Question

Quizplus · Accepted Answer

An exchange transaction is a transaction in which both parties receive and give something of value. In this case, the aquatic center receives payment in exchange for providing a service (group swim). The other transactions listed do not involve a direct exchange of goods or services.

When Examining Revenue Transactions,which of the Following Transactions Is Classified