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Which of the following transactions is classified as an exchange transaction rather than a nonexchange transaction?

a. Fees charged by a municipal airport
b. Property Taxes
c. State grant to conduct an after school program for children
d. Bequest left to the city by a wealthy citizen

User Yonili
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1 Answer

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Final answer:

Fees charged by a municipal airport are considered an exchange transaction because there is a reciprocal exchange of value between the airport services and the user fees.

Step-by-step explanation:

The transaction classified as an exchange transaction rather than a nonexchange transaction is Fees charged by a municipal airport. An exchange transaction involves a two-way exchange where each party receives something of approximately equal value.

In this case, the airport provides services and the user pays a fee in return. On the contrary, the other options such as Property Taxes, a State grant to conduct an after school program for children, and a Bequest left to the city by a wealthy citizen are considered nonexchange transactions as they lack a reciprocal exchange of value.

Based on the options given, the transaction that is classified as an exchange transaction is option a.

User Ashwin Mahajan
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