A Friend Claims That Canada Is a Net International Debtor

question 61

Multiple Choice

A friend claims that Canada is a net international debtor.The best way of testing this claim is to

• A)see whether Canadian foreign liabilities exceeded Canadian foreign income.
• B)see whether Canadian receipts from foreign assets exceeded Canadian payments to foreign owners of Canadian assets.
• C)see whether Canadian official reserve assets were positive or negative.
• D)see whether Canada ran a balance of payments surplus or deficit last year.

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Definitions:

General Journal

A foundational accounting record where transactions are recorded in chronological order before being posted to specific accounts in the general ledger.

General Journal

An accounting ledger where all types of financial transactions are initially recorded before being posted to specific accounts.

Office Supplies

Various items and materials such as pens, paper, and files, used in offices for the purpose of maintaining smooth business operations.

General Journal

A basic accounting book or document used to record all the day-to-day financial transactions of a business.