Bob Traps Lobsters in Maine and Sells Them to a Restaurant

question 36

Multiple Choice

Bob traps lobsters in Maine and sells them to a restaurant in Egypt.Other things the same,these sales

• A) increase U.S.net exports and has no effect on Egyptian net exports.
• B) increase U.S.net exports and decrease Egyptian net exports.
• C) decrease U.S.net exports and have no effect on Egyptian net exports.
• D) decrease U.S.net exports and increase Egyptian net exports.

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Definitions:

Normal Credit

In accounting, it refers to the balance side (either credit or debit) that is expected for a particular type of account; for liability accounts, equity accounts, and revenue accounts, it is typically a credit balance.

Asset

Resources owned or controlled by a company expected to provide future economic benefits.

Liability

A financial obligation or debt that a company is required to repay to another entity in the future.

Statement of Cash Flows

A financial report that provides aggregate data regarding all cash inflows and outflows a company receives from its ongoing operations, investment activities, and financial activities over a period.