The Following Are Key Terms in Chapter 4 That Relate

question 57

Short Answer

The following are key terms in Chapter 4 that relate to exchange and nonexchange transactions:
A.Derived tax revenues
B.Exchange transactions
C.Nonexchange transactions
D.Imposed nonexchange transactions
E.Voluntary nonexchange transactions
For each of the following definitions,indicate the key term from the list above that best matches by placing the appropriate letter in the blank space next to the definition.
_____ 1. Transactions in which the donor derives no direct tangible benefits from the recipient agency
_____ 2. A classification of nonexchange transaction,such as income or sales taxes
_____ 3. A category of nonexchange transaction that includes certain grants and entitlements and most donations
_____ 4. A category of nonexchange transactions,such as property taxes and most fines and forfeitures.
B. Exchange transactions
C. Nonexchange transactions
D. Imposed nonexchange transactions
E. Voluntary nonexchange transactions
For each of the following definitions, indicate the key term from the list above that best matches by placing the appropriate letter in the blank space next to the definition.
_____ 1. Transactions in which the donor derives no direct tangible benefits from the recipient agency
_____ 2. A classification of nonexchange transaction, such as income or sales taxes
_____ 3. A category of nonexchange transaction that includes certain grants and entitlements and most donations
_____ 4. A category of nonexchange transactions, such as property taxes and most fines and forfeitures.

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Definitions:

Effective EAR

The Effective Annual Rate is the actual return on an investment, taking into account the effect of compounding interest.

Par Value

The nominal or face value of a bond, stock, or coupon as stated by the issuer, which is often used to calculate interest payments.

Annual Coupon Payments

The fixed interest payments made by a bond issuer to the bondholders at regular intervals over the life of the bond.

Positive Slope

In graph terms, a positive slope indicates that as one variable increases, the other variable also increases, demonstrating a direct relationship.