Which of the Following Is Correct

question 51

Multiple Choice

Which of the following is correct?

• A) Private international borrowing and lending are heavily restricted by the governments of developing countries.
• B) Poor countries generate enough savings to fund an adequate level of investment.
• C) Poor countries generate enough savings to fund investments.
• D) In some developing countries, different exchange rates apply to different categories of transactions.
• E) In some developing countries, local currency is not easily convertible into other currencies.

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Definitions:

Cash

Refers to money in the form of coins or banknotes, especially that possessed by a person or business for transactions.

Accounts Payable

Accounts payable is a liability account that records amounts a company owes to suppliers or creditors for goods and services received but not yet paid for.

Utilities Expense

The cost incurred from the consumption of utility services such as electricity, water, and gas in the business operations.

Income Summary Account

An account used in closing entries to gather all income and expense items, facilitating the transfer of their net balance to retained earnings.