Which of the Following Appears in the Capital Account Part

question 95

Multiple Choice

Which of the following appears in the capital account part of the balance of payments?

• A) A gift to a Canadian from his English aunt
• B) A purchase by the Honda corporation of a Canadian Treasury bill
• C) A purchase by the Bank of England of a Canadian Treasury bill
• D) Income earned by the Honda corporation on its automobile plant in Ontario

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Definitions:

Δ Stockholders' Equity

The change in the total value of a company's equity over a specific period, influenced by earnings, dividends, and stock issues.

Financing Activities

Transactions and events where a company generates or repays capital to finance its operations.

Comparative Balance Sheets

Financial statements that present the assets, liabilities, and equity of an entity at different points in time for comparison.

Cash Flows

Represents the total amount of money being transferred into and out of a business, especially as affecting liquidity.