Which of the Following Appears as a Positive Item on the Balance

question 302

Multiple Choice

Which of the following appears as a positive item on the balance of payments accounts for the United States?

• A)the U.S. government sending aid to natural-disaster victims in Asia
• B)American tourists spending money in the other countries
• C)the purchase of U.S. Treasury bonds by a foreign bank
• D)the payment of stock dividends by U.S. firms to foreign shareholders

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Definitions:

Fixed Costs

Overheads that stay the same no matter the quantity of goods produced or sold, like rent, salaries, and insurance.

Activity Level

A measure of the volume of work or production capability, often used in cost accounting to determine appropriate cost allocations.

Unit Variable Cost

The cost directly associated with producing each unit of output, varying with the level of production or sales volume.

Activity Level

The volume of production or the degree of services provided by a business, which can impact the behavior of costs and is critical in budgeting and planning.