Statement I

question 221

Multiple Choice

Statement I.Foreigners own more assets in the United States than Americans abroad.
Statement II.Our high current account deficit should be of no concern to the U.S.government.

• A)Statement I is true and statement II is false.
• B)Statement II is true and statement I is false.
• C)Both statements are true.
• D)Both statements are false.

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Definitions:

Gross Method

An accounting practice where invoice transactions are recorded at their full, or gross, amounts before any discounts are applied.

Periodic Inventory Method

An accounting approach where inventory is physically counted at specific intervals to determine the cost of goods sold.

Merchandise Purchase

Refers to the acquisition of goods to be sold in the normal course of business.