Which of the Following Is True

question 190

Multiple Choice

Which of the following is true?

• A)both b and c
• B)the U.S.capital account records international transactions involving purchases of investments
• C)the U.S.capital account records international transactions involving sales of investments
• D)U.S.capital refers to the export of real capital only
• E)U.S.capital outflows result when foreigners purchase U.S.assets

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Definitions:

Impairment Losses

Monetary losses identified when the book value of an asset is higher than its salvageable value.

Fair Value

An estimate of the price at which an asset or liability could be traded in a fair transaction between willing parties.

Accelerated Depreciation

A depreciation method that allows a larger depreciation deduction in the early years of an asset's life and smaller deductions in the later years.