Which of the Following Appears in the Capital Account Part

question 59

Multiple Choice

Which of the following appears in the capital account part of the balance of payments?

• A)a gift to an American from his English aunt
• B)a purchase by the Honda corporation of a U.S. Treasury bill
• C)a purchase by the Bank of England of a U.S. Treasury bill
• D)income earned by the Honda corporation on its automobile plant in Ohio

---

Definitions:

Dividends in Arrears

Dividends on preferred shares that have not been paid in the scheduled time, accruing until they are paid out.

Footnotes

Additional information provided at the bottom of financial statements to offer more details about an entity's financial status or policies.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares. Although the number of shares outstanding increases by a specific multiple, the total dollar value of the shares remains the same compared to pre-split amounts, essentially diluting the share price.