Which of the Following Would Be Represented as a Debit

question 77

Multiple Choice

Which of the following would be represented as a debit in the U.S.balance of payments?

• A)U.S.purchase of cars from Italy
• B)U.S.sale of beef to Israel
• C)U.S.government receives transfers from foreign governments to support U.S.expenses incurred in Europe
• D)U.S.residents receive gifts of money from friends abroad
• E)income received by U.S.resident from overseas investment

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Definitions:

Sale of Receivables with Recourse

A financial transaction where a company sells its receivables to another party but remains liable if the party owing the receivables fails to pay.

Required Disclosure

Information that entities are legally mandated to provide to stakeholders, regulators, or the public within financial statements or reports.

Scheduled Interest

The amount of interest payments that are planned and detailed according to the terms of a loan over a certain period.

Repayment Schedule

A repayment schedule outlines the terms for paying back a loan or debt, specifying the amounts due at each payment interval, the number of payments, and the interest rate applied.