Which of the Following Is a Surplus Item in the U.S

question 152

Multiple Choice

Which of the following is a surplus item in the U.S. current account?

• A) The U.S. government reduces the tariff rates on some imported goods.
• B) IBM pays dividends to British shareholders.
• C) Finn vodka becomes more popular in the United States.
• D) The U.S. government cuts back on military personnel stationed in S. Korea.

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Definitions:

Assets

Resources owned by a company from which future economic benefits are expected to flow to the entity, including cash, inventory, and property.

Liabilities

Financial obligations or debts that a business owes to others, which must be settled over time through the transfer of economic benefits including money, goods, or services.

Expense Recognition Principle

The accounting principle that dictates expenses should be recognized in the period in which they are incurred, contributing to the accurate reporting of financial results.

Wages Expense

The total cost incurred by an enterprise for the wages paid to employees, reported on the income statement.