An Example of an Item Included in the Current Account

question 20

Multiple Choice

An example of an item included in the current account is

• A) the profits made by a South Korean company operating a plant in the United States.
• B) the stock of Google held by a South Korean investor.
• C) a South Korean company's deposits in Citibank.
• D) a bond sold by Tesla Motors to a South Korean investor.

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Definitions:

Journalizing

The process of recording financial transactions in the journal as part of the accounting cycle.

Transaction

An economic event or condition that directly changes an entity's financial condition or its results of operations.

Debit And Credit

Fundamental concepts in accounting that represent the increase or decrease in an account balance; debits increase asset or expense accounts, while credits increase liability, equity, or revenue accounts.

Chart Of Accounts

An organized list of all accounts in a company's financial system, which is used to classify transactions.