Consider the Balance-Of-Payments Accounting Information for Lalaland in 2015 as Shown

question 128

Multiple Choice

Consider the balance-of-payments accounting information for Lalaland in 2015 as shown in the table below.All values are in billions of dollars and any variables not provided below have a value of zero.
TABLE 34-1
-Refer to Table 34-1.What is the net change in the stock of Lalaland's investments abroad in 2015?

• A)a decrease of $180 billion
• B)a decrease of $90 billion
• C)an increase of $90 billion
• D)an increase of $180 billion
• E)insufficient information to determine

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Definitions:

Stockholder Investments

Funds or assets that shareholders contribute to a corporation in exchange for ownership interest in the form of stock.

Dividends

Dividends refer to payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.

Expense Recognition

An accounting principle that matches expenses with revenues in the period in which the incurred expense contributes to revenue generation, regardless of when the cash transaction happens.

Revenue Reported

The total amount of income recognized by a company during a specific accounting period from its business activities.