A USPurchase of Oil from Overseas Paid for with Foreign Currency

question 17

Multiple Choice

A U.S.purchase of oil from overseas paid for with foreign currency it already owned

• A)increases U.S.net exports,and increases U.S.net capital outflow.
• B)increases U.S.net exports,and decreases U.S.net capital outflow.
• C)decreases U.S.net exports,and increases U.S.net capital outflow.
• D)decreases U.S.net exports,and decreases U.S.net capital outflow.

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Definitions:

Operating Activities

Operating activities involve the primary revenue-generating activities of an organization, including production, sales, and delivery of the company’s product as well as administrative and general expenses.

Salaries Expense

The cost incurred by a business to pay its employees for services rendered during a specific period.

Unearned Revenues

Money received by a company for goods or services yet to be delivered or performed, recorded as a liability.

Operating Cash Payments

Cash outflows related to the primary revenue-generating activities of a business, such as payments to suppliers and employees.