The Current Account Records

question 65

Multiple Choice

The current account records:

• A)last year's flows of funds into and out of the country.
• B)the current flows of imports and exports of goods and services,net income earned by residents from foreign assets,and net transfer payments.
• C)all the foreign direct investment received by a country in a year.
• D)the purchase of financial assets,such as stocks and bonds,by the residents of a country in a year.
• E)the purchase of all real assets,such as land and housing by the citizens of a country in a year.

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Definitions:

Perpetual Inventory System

This is an accounting method that continuously updates inventory records for each sale or purchase of inventory.

Allowance for Doubtful Accounts

A contra-account that reduces the total receivables reported on the balance sheet to reflect the amount expected to be collected.

Perpetual Inventory System

The perpetual inventory system continuously updates inventory records for each purchase and sale transaction, providing real-time inventory levels.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, typically including a balance sheet, income statement, and cash flow statement.