A Statement of Spending Flows into and Out of the Country

question 118

Multiple Choice

A statement of spending flows into and out of the country during a particular period for
Purchases of assets is called a

• A) current account.
• B) capital account.
• C) net foreign investment account
• D) net outflow account.

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Definitions:

Accounts Payable

The sum of money owed by a business to its vendors or lenders for products and services acquired on credit.

Top-Down Approach

An investment strategy that begins with analyzing macroeconomic factors before drilling down into the specifics of individual securities.

Operating Cash Flow

Cash generated from a company's normal business operations, indicating whether a company can maintain or grow its operations without new financing.

Comprehensive Income

The total change in equity for a reporting period other than from transactions with owners.