Which of the Following Transactions Would Be Excluded in the Capital

question 29

Multiple Choice

Which of the following transactions would be excluded in the capital account?

• A) A Japanese citizen purchases a U.S. Treasury bill.
• B) A Japanese citizen purchases an office building in Manhattan.
• C) A U.S. citizen purchases a share of stock from a Japanese company.
• D) An American purchases a Toyota.

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Definitions:

Job Order Cost System

An accounting method used to accumulate costs for each individual job or project, providing detailed cost tracking.

Organization's Cost Performance

The measure of how efficiently an organization controls its expenses in relation to its revenues or operational activities.

Job Order Cost Accounting

A system used to calculate the costs associated with a specific job or order, tracking direct labor, direct materials, and overhead.

Service Business

A type of business that provides intangible products or services to its customers rather than selling physical goods.