Which of the Following Would Be Entered into the U

question 150

Multiple Choice

Which of the following would be entered into the U.S.current account?

• A) a share of Apple stock purchased by a U.S.citizen
• B) an abandoned Italian factory purchased by an American company
• C) a share of Coca-Cola stock bought by a foreign citizen
• D) a bottle of wine from Portugal purchased by a U.S.citizen
• E) a Japanese government bond purchased by the U.S.government

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Definitions:

Ending Inventory

The cost of merchandise ready for sale when an accounting cycle ends.

Average Cost Flow Methods

This inventory valuation method calculates the cost of goods sold and ending inventory based on the weighted average cost of all units available for sale.

Gross Profit

The financial metric calculated by subtracting the cost of goods sold from total sales revenue.

Ending Inventory

The total value of all goods available for sale at the end of an accounting period, calculated as the beginning inventory plus purchases minus the cost of goods sold.