Which of the Following Is a Deficit Item on the U.S

question 53

Multiple Choice

Which of the following is a deficit item on the U.S. balance of payments accounts?

• A) A U.S. firm sells a product to a Mexican firm.
• B) An Italian tourist in Miami purchases a beach ball.
• C) A Spaniard buys 100 shares of Ford stock.
• D) A U.S. resident buys a smartphone in Japan.

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Definitions:

Credit Sales

Sales in which revenue is recognized at the point of sale but payment is deferred.

Accounts Receivable

Amounts owed to a company by customers for goods or services that have been delivered but not yet paid for.

Credit Card Expense

Expenses incurred through the use of a credit card, including purchases, interest charges, and other fees.

Net Sales

Net Sales are the revenue from the sale of goods or services minus returns, allowances for damaged or missing goods, and discounts.