Which of the Following Is an Example of U

question 127

Multiple Choice

Which of the following is an example of U.S.foreign direct investment and by itself increases U.S.net capital outflow?

• A)A U.S.electronics company opens and operates a new factory in India.
• B)A Swiss bank buys bonds issued by a U.S.company.
• C)A U.S.pension fund buys bonds issued by the Japanese government.
• D)A French restaurant opens and operates a restaurant in New York.

---

Definitions:

Owner's Drawings

A withdrawal by the owner of a business for personal use, reducing the equity in the business.

Income Summary

An account used during the closing process that aggregates all income and expense accounts to determine the net profit or loss.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or one operating cycle, whichever is longer.

Classified Balance Sheet

A financial statement that groups a company's assets, liabilities, and equity into categories, making it easier to assess financial health.