Which of the Following Transactions Leads to an Inflow of Funds

question 220

Multiple Choice

Which of the following transactions leads to an inflow of funds on the U.S. capital account?

• A)A U.S. resident purchases a share of stock on the Hong Kong exchange.
• B)A U.S. resident sells wheat to an African nation.
• C)A resident of China purchases U.S. government bonds.
• D)A resident of Mexico visits the United States.

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Definitions:

Consolidation Worksheet

A document used in preparing consolidated financial statements that combines the financial data of parent and subsidiary companies.

Revalued Above Cost

When an asset's market value increases beyond its historical cost, leading to an adjustment in the book value.

Goodwill

An intangible asset that arises when a company acquires another business for more than the fair value of its identifiable net assets.