Which of the Following Transactions Leads to an Inflow of Funds

question 78

Multiple Choice

Which of the following transactions leads to an inflow of funds on the U.S. financial account?

• A) A U.S. resident purchases a share of stock on the Hong Kong exchange.
• B) A U.S. resident sells wheat to an African nation.
• C) A resident of China purchases U.S. government bonds.
• D) A resident of Mexico visits the United States.

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Definitions:

Cash Receipts Journal

A specialized accounting journal used to record all cash inflows or receipts of the business.

Cash Withdrawn

Funds taken out from a business by the owner(s) for personal use, which can affect the owner's equity account.

Customer's Account

An account representing a customer's relationship with a business, detailing their purchases, payments, and balances.

General Journal

A primary accounting record where all types of financial transactions are initially recorded using double-entry bookkeeping before posting to specific accounts in the ledger.