Which of the Following Types of Nonexchange Transactions Recognize Revenue

question 87

Multiple Choice

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.

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Definitions:

Break-even Sales

The amount of revenue needed to cover total costs, both fixed and variable, indicating the point at which a company neither makes a profit nor incurs a loss.

Margin of Safety

The difference between actual or projected sales and the sales level necessary to break even, as a buffer against uncertainty.

Contribution Margin

The difference between sales revenue and variable costs of a product or service, indicating how much contributes towards covering fixed costs and profit.

Variable Costs

Costs that vary in direct proportion to changes in the level of production or sales.