Unformatted text preview: 3- This is an imposed non exchanged transaction with time restrictions. The government can only use this fund only when the developer starts its work. In this case the city can recognize the revenue for the period in which it intends to use the funds. Upon reception, it can defer the revenue. 4- This is an exchange transaction. The reason this is an exchange transaction is because the license fee is used for health inspections. The revenue is recognized when the cash is received. 5- This is a exchange transaction because the fees should be recognized as revenue over the period covered....
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- Spring '10
- Generally Accepted Accounting Principles, Deferral, approximately equal value, exchange t ransaction