The Account That Summarizes the Flow of Money into and Out

question 23

Multiple Choice

The account that summarizes the flow of money into and out of domestic and foreign assets is called the _____ account.

• A) capital
• B) current
• C) net asset
• D) money market

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Definitions:

Stockholders' Equity

It represents the ownership interest of shareholders in the assets of a company, after deducting liabilities.

Income Statement

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

Available-for-sale Securities

Financial assets that are neither held for trading nor intended to be held to maturity, and can be sold in response to needs for liquidity or changes in interest rates.

Trading

The act of buying, selling, or exchanging financial instruments, commodities, or other assets in financial markets or over-the-counter.