Question

• Distinguish between an exchange and a nonexchange transaction.Analyze the reporting requirements for nonexchange transactionsunder GASB Statement No. 33 Accounting and Financial Reportingfor Nonexchange Transactions focusing on the requiredcriteria for reporting revenue on the modified accrual basis.
• Describe circumstances under which a government entity mustreport a pass-through grant as both revenue and expenditure.Examine the importance of accurately reporting pass-through grantson government entities.