Which of the Following Will Be Recorded in the fiNancial

question 18

Multiple Choice

Which of the following will be recorded in the financial account of the UK's balance of payments?

• A) The services of a London-based corporate lawyer to a US-based company.
• B) The purchase of German cars by a UK-based firm.
• C) The purchase of a French company by a UK-based firm.
• D) The UK's contribution to EU for a new railway network connecting the EU nations.

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Definitions:

Profit Margin

A financial metric that measures the percentage of revenue that exceeds the cost of goods sold, indicating the efficiency of a company in managing its expenses and profits.

Required Accounting Return

The minimum return that a company needs to achieve on its investments based on accounting principles, to satisfy stakeholders or internal benchmarks.

Depreciated Straight-line

A method of calculating depreciation by equally spreading the cost of an asset over its useful life.

Book Value

The net asset value of a company, calculated by total assets minus intangible assets (patents, goodwill) and liabilities.