Which of the Following Is Considered a Capital Inflow

question 9

Multiple Choice

Which of the following is considered a capital inflow?

• A) a sale of U.S. financial assets to a foreign buyer
• B) a loan from a U.S. bank to a foreign borrower
• C) a purchase of foreign financial assets by a U.S. buyer
• D) a U.S. citizen's repayment of a loan from a foreign bank

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Definitions:

Ledger Accounts

These are individual accounts in accounting that record transactions related to a company's assets, liabilities, equity, revenue, and expenses in a double-entry bookkeeping system.

Net Income

Represents the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenues.

Adjusting Entries

Adjusting Entries are journal entries made in accounting records at the end of an accounting period to update accounts for accruals and deferrals not recorded during the period.

Real Account

An accounting record that represents assets, liabilities, and owner’s equity, and is not closed at the end of the accounting period but carried over to the next.