When Australia Sends Money to the Philippines to Help Typhoon

question 90

Multiple Choice

When Australia sends money to the Philippines to help typhoon survivors, the transaction is recorded in the:

• A)capital account.
• B)current account.
• C)financial account.
• D)foreign exchange account.

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Definitions:

Return On Assets

An overall measure of profitability; computed by dividing net income by average total assets.

Net Income

The total earnings or profit a company generates, calculated as revenue minus expenses, taxes, and deductions.

Total Assets

The sum of all resources owned by a company that have economic value and can be converted into cash, including property, equipment, and cash itself.

Price-Earnings Ratio

A valuation metric comparing a company's current share price to its per-share earnings, indicating investor expectations of growth.