Which of the Following Transactions Would Be Recorded in the Current

question 63

Multiple Choice

Which of the following transactions would be recorded in the current account?

• A)U)S. investors purchase bonds from Germany.
• B)A person living in the United States sends money home to her family in Cuba.
• C)The Fed increases its holdings of yen.
• D)The U.S. transfers a military base to another country.

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Definitions:

Variable Costing

A costing method in which all variable manufacturing costs are included as inventory costs, while fixed manufacturing overhead is treated as an expense in the period incurred.

External Reporting

External reporting involves the preparation and presentation of financial statements and other reports by a company to provide financial and operational information to external stakeholders, such as investors, creditors, and regulatory agencies.

Absorption Costing

An accounting method that includes all manufacturing costs in the cost of a product.

Fixed Costs

Expenses that do not change with the volume of production or sales, such as rent, salaries, and insurance premiums.