Generally Speaking,any Transaction That Results in a Payment to Foreigners

question 70

Multiple Choice

Generally speaking,any transaction that results in a payment to foreigners

• A)will be recorded as a debit,with a negative sign,in the U.S.balance of payments.
• B)will be recorded as a debit,with a positive sign,in the U.S.balance of payments.
• C)will be recorded as a credit,with a negative sign,in the U.S.balance of payments.
• D)will be recorded as a credit,with a positive sign,in the U.S.balance of payments.

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Definitions:

Goodwill

An intangible asset representing the excess value paid over the net fair value of identifiable assets and liabilities during an acquisition.

Parent-Company Extension Method

An accounting technique used to consolidate the financial statements of a parent company and its subsidiaries, where the entire business is treated as an extension of the parent company.

Goodwill

A non-physical asset that is created when one company is bought by another for an amount exceeding the fair market value of the acquired company's net identifiable assets.

Non-Controlling Interest

The portion of equity ownership in a subsidiary not attributed to the parent company, often reflected in the consolidated financial statements.