Which of the Following Is Not a True Statement Regarding

question 55

Multiple Choice

Which of the following is not a true statement regarding revenues from various types of nonexchange transactions?

• A) Derived tax revenues occur as a result of sales and or income tax.
• B) Imposed nonexchange revenues consist of only fines and penalties assessed by the governing agency.
• C) Government mandated nonexchange transactions includes grants from the federal government to the local public-school system for a free lunch program.
• D) Voluntary nonexchange transactions can originate from a governmental agency or private citizen organization.
• E) Imposed nonexchange transactions revenue recognition is made in the time period when the resulting resources are required to be used or in the first period in which use is permitted.

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Definitions:

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made to another party if the latter has reasonably relied on that promise to their detriment.

Software Power

The capability and effectiveness of software in performing its intended functions and tasks efficiently.

Reduction in Force

A corporate strategy involving the reduction of a company's workforce to improve financial performance or adapt to changing market conditions.

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise that another party has reasonably and substantially relied on, even if no formal contract exists.