Suppose That Foreign Citizens Decide to Purchase More U

question 171

Multiple Choice

Suppose that foreign citizens decide to purchase more U.S.pharmaceuticals and U.S.citizens decide to buy more stock in foreign corporations.Other things the same,these actions

• A)raise both U.S.net exports and U.S.net capital outflows.
• B)raise U.S.net exports and lower U.S.net capital outflows.
• C)lower both U.S.net exports and U.S.net capital outflows.
• D)lower U.S.net exports and raise U.S.net capital outflows.

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Definitions:

Unearned Revenue

Funds paid to a company for products or services that have not yet been provided or completed.

Accrued Revenue

Income earned but not yet received, typically recorded with an adjusting journal entry.

Prepaid Expense

Prepaid expense refers to payments made in advance for goods or services to be received in the future, recognized as assets on a balance sheet.

Unearned Service Revenue

Income received in advance for services that have not yet been performed, considered a liability until the service is delivered.