The Difference Between the Payments and Receipts from International Transactions

question 156

Multiple Choice

The difference between the payments and receipts from international transactions in assets is represented in the

• A)official financing account.
• B)trade balance.
• C)capital account balance.
• D)current account balance.
• E)merchandise account.

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Definitions:

Lease Expense

The cost incurred from leasing an asset, including both fixed payments and variable charges over the lease term.

Leveraged Lease

A lease agreement that involves a lessor financing the leased asset through borrowing, with the lease payments covering the loan repayments and providing profit.

Direct Financing Lease

A lease agreement where the lessor records the present value of lease payments as a receivable rather than as a sale or lease revenue.

Lessor

The party in a lease agreement that owns the leased asset and grants the lessee the right to use the asset in exchange for lease payments.