Which One of the Following Transactions Would Be Recorded as a Positive

question 108

Multiple Choice

Which one of the following transactions would be recorded as a positive entry in the Canadian balance of payment accounts?

• A)A Canadian tourist spends $3,000 while visiting France.
• B)A Canadian tourist spends $3,000 while visiting Banff.
• C)A Canadian citizen purchases a U.K. government bond.
• D)A Canadian corporation sends interest payments on outstanding bonds to U.S. citizens.
• E)A French tourist spends $3,000 while visiting Banff.

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Definitions:

Economic Profit

The split between total financial receipts and overall disbursements, considering both direct and hidden expenses.

Accounting Profit

The net income a company generates calculated by subtracting total explicit costs from total revenues, according to generally accepted accounting principles (GAAP).

Output to Supply

The process of producing and providing goods or services to meet demand.

Firms

Business organizations engaged in professional, commercial, or industrial activities, aiming to generate profits.