Which of the Following Is a Deficit Item on the U.S

question 240

Multiple Choice

Which of the following is a deficit item on the U.S. balance of payments accounts?

• A)A U.S. firm sells a product to a Mexican firm.
• B)An Italian tourist in Miami purchases a beach ball.
• C)A Spaniard buys 100 shares of Ford stock.
• D)A U.S. resident buys gold from the Japanese central bank.

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Definitions:

Common Stock

Equity securities that represent ownership interests in a corporation, providing voting rights and entitling the holder to a share of the company's success through dividends and/or capital appreciation.

Expense Recognition

An accounting principle that dictates the conditions under which expenses are recognized and reported in financial statements.

Revenue Recognition

The principle that dictates the specific conditions under which revenue is recognized and recorded in the accounts.