Which of the Following Is Not Included in the U

question 29

Multiple Choice

Which of the following is not included in the U.S. financial account?

• A) change in U.S. government assets held abroad
• B) change in foreign private assets held in the United States
• C) Mexico's debt to the U.S. that was forgiven
• D) change in private U.S. assets held abroad

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Definitions:

Period Cost

Expenses that are not directly tied to the production process and are instead expensed in the period in which they occur.

Variable Costing

An accounting method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs.

Variable Production Costs

Costs that vary directly with the level of production output, such as raw materials and direct labor.

Absorption Costing

An accounting method that includes all manufacturing costs, both variable and fixed, in the cost of producing each unit of a product.