Which of the Following Statements Is True About the Role

question 240

Multiple Choice

Which of the following statements is true about the role of gifts given to U.S. citizens from foreign residents?

• A) Gifts are not included in the balance of payments because of the nature of the gift.
• B) Gifts are only included in the balance of payments if the gift is given to a government official.
• C) Gifts are included in the balance of payments.
• D) Gifts given to U.S. citizens are not included in the balance of payments but gifts given to foreigners are included.

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Definitions:

Earnings Retention

The portion of net income that is retained by the corporation rather than distributed to its owners as dividends.

Discontinues

The process of ceasing production, support, or sale of a product or service.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period of time.

Continuing Operations

The segments or units of a business that are expected to continue operations into the foreseeable future, as opposed to those segments that are being discontinued or sold.