A US Firm Builds a Factory in South Africa

question 286

Multiple Choice

A U.S. firm builds a factory in South Africa. This will be entered as a

• A) debit in the U.S. capital account.
• B) debit in the U.S. current account.
• C) credit in the U.S. capital account.
• D) credit in the U.S. current account.

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Definitions:

Cost Centers

Parts of an organization that do not directly generate revenue but incur costs, such as HR and IT departments, essential for the business's operations.

Manufacturing Plants

Facilities dedicated to the production of goods, often involving significant use of machinery and automation.

Control

The power to influence or direct people's behavior or the course of events or the procedures in place to manage operations, compliance, and financial reporting.

Profit Center Manager

A manager responsible for both the revenue and costs of their department, thereby directly influencing its profitability.