A Summary Record of a Country's Economic Transactions with Foreign

question 21

Multiple Choice

A summary record of a country's economic transactions with foreign residents and governments over a year is called .A country's balance of payments shows a

• A)the current account.
• B)the capital account.
• C)the international financial record.
• D)the balance of international payments.

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Definitions:

Accounts Receivable

Money owed to a company by its customers for goods or services delivered but not yet paid for.

Retained Earnings Account

An equity account on the balance sheet that represents the accumulated net income of a company that has not been distributed to shareholders as dividends.

Dividends Account

An account in the ledger that records dividends paid out to shareholders by a company.

Retained Earnings Account

An equity account that represents the accumulated portion of net income not distributed to shareholders in the form of dividends.