The Capital Account Is Divided into Three Subcategories: Direct Investment,portfolio

question 74

Multiple Choice

The capital account is divided into three subcategories: direct investment,portfolio investment,and other investment.Direct investment involves

• A)acquisitions of controlling interests in foreign businesses.
• B)investments in foreign stocks and bonds that do not involve acquisitions of control.
• C)bank deposits,currency investment,trade credit,and the like.
• D)all of the options

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Definitions:

Finished Goods Inventory

Refers to the inventory of goods that are completed and ready for sale.

Cost of Goods Manufactured

The total expense incurred in manufacturing goods, including materials, labor, and overhead, up to the point of completion.

Raw Materials

Primary components used to produce or fabricate products.

Direct Labor

The wages and expenses directly associated with workers who physically produce goods or provide services.