Question

What is No exchange revenue. Explain.

What is No exchange revenue. Explain.

Homework Answers

Answer #1

Answer: No exchange revenue- As the name suggests, no exchange revenue means, the transaction takes place only one side and not both the side. Payee receives the funds from the payer but payee is not responsible or required to deliver the goods or service in return. It is one sided transaction of revenue. Non exchange transactions are done by Non-profit organization or NGOs and Government agencies. People and companies give charity and donation but in return, do not take anything. These transactions can be voluntary.

Examples:

  1. Taxpayers pay income taxes to Federal Government but they do not directly receive anything in return.
  2. Wealthy people donate money to Not for profit organization, they provide food and shelter to poor, poor do not have to pay money for getting food.
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