CHAPTER 3.

I'm not sure if i'm going in the right direction with my comprehension. Can someone explain this concept in a less dense language? (dumb it down?)

THEFOURCLASSESOFNONEXCHANGEREVENUESARE(1)IMPOSEDNONEXCHANGETRANSACTIONS,(2)DERIVEDTAXREVENUES,(3)GOVERNMENT-MANDATEDNONEXCHANGETRANSACTIONS,AND(4)VOLUNTARYNONEXCHANGETRANSACTIONS.ANEXAMPLEOFIMPOSEDNONEXCHANGEREVENUESWOULDBEPROPERTYTAXES. --ASSETSFROMPROPERTYTAXESARERECOGNIZEDWHENANENFORCEABLELEGALCLAIMEXISTS,ORWHENTHERESOURCESARERECEIVED,WHICHEVEROCCURSFIRST.REVENUESWOULDBERECOGNIZEDINTHEPERIODFORWHICHTHETAXESARELEVIED.EXAMPLESOFDERIVEDTAXREVENUESINCLUDESALES,INCOME,ANDMOTORFUELTAXES.FORDERIVEDTAXREVENUES,ASSETSARERECOGNIZEDWHENTHETAXISIMPOSEDORTHERESOURCESARERECEIVED,WHICHEVEROCCURSFIRST.THETAXISRECOGNIZEDASREVENUEATTHESAMETIMEASTHEASSET,PROVIDINGTHATTHEUNDERLYINGTRANSACTIONHASTAKENPLACE.ANEXAMPLEOFGOVERNMENT-MANDATEDNONEXCHANGETRANSACTIONSWOULDBESTATEFUNDINGFORMAINSTREAMINGHANDICAPPEDCHILDRENINCLASSROOMS,ACCOMPLANIEDBYSTATELAWTHATMAINSTREAMINGTAKEPLACE.ASSETSANDREVENUESSHOULDBERECOGNIZEDWHENELIGIBILITYREQUIREMENTSHAVEBEENMET.ANEXAMPLEOFAVOLUNTARYNONEXCHANGETRANSACTIONWOULDBEACONTRIBUTIONTOACITYLIBRARYENDOWMENTFUND.VOLUNTARYNONEXCHANGETRANSACTIONSSHOULDBERECOGNIZEDASASSETSANDREVENUESWHENELIGIBILITYREQUIREMENTSHAVEBEENMET.