An Example of an Item Included in the Capital Account

question 172

Multiple Choice

An example of an item included in the capital account is

• A) the profits made by a U.S. shoe company operating a plant in Vietnam.
• B) Dell computers exported to Brazil.
• C) a Pepsi-Cola bottling plant in Greece.
• D) a stipend paid to a Bulgarian student studying at Baylor University in the United States.

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Definitions:

Discounts

Reductions in price given to customers, often used as a sales promotion technique.

Instrument

A written legal document that defines rights, duties, entitlements, or liabilities, such as a contract, will, promissory note, or share certificate.

Regular Course

Activities or operations that are conducted in the normal and usual manner of conducting business.

Good Faith

The sincere intention to be fair, open, and honest, devoid of any intention to defraud or seek an unfair advantage.