In the US Balance of Payments, Foreign Purchases of Assets in the in the United

question 250

Multiple Choice

In the U.S. balance of payments, foreign purchases of assets in the United States are a

• A) foreign currency outflow.
• B) foreign currency inflow.
• C) current account item.
• D) debit, or outpayment.

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Definitions:

IFRS

IFRS, or International Financial Reporting Standards, are globally accepted standards for accounting that guide how transactions and other accounting events are reported in financial statements.

Financial Accounting Standards Board

An independent organization that establishes financial accounting and reporting standards in the United States.

U.S. Accounting Standards

The accounting principles, standards, and procedures established by the U.S. Financial Accounting Standards Board (FASB) for domestic companies.

GAAP

Generally Accepted Accounting Principles, a collection of commonly-followed accounting rules and standards for financial reporting.