Which of the Following Would Not Be Counted in the U.S

question 69

Multiple Choice

Which of the following would not be counted in the U.S. BOP current account?

• A) Helen, an American oil engineer, is a paid adviser to Middle Eastern countries in the area of petroleum extraction.
• B) General Motors Corporation owns buildings that are situated in Mexico.
• C) France purchases a new jet fighter aircraft from the Boeing Company in the U.S.
• D) Martha receives a $50 dividend check on stock she owns in a business in Germany.
• E) A wealthy Italian purchases numerous antiques in the United States for his villa.

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Definitions:

Credit Sales

Sales made by a business where the customer is allowed to pay at a later date.

Bad Debt Expense

A charge to the income statement for accounts receivable that a company has determined it will not collect.

Adjusting Entry

An entry made in the books of accounts at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.

Credit Sales

Transactions involving the transfer of goods or services to a customer with the agreement that payment will be made at a later date.