1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Naya [18.7K]
3 years ago
8

Consider the following hypothetical transactions of the Balance of Payments of Country A: 1. Country A's firms export to Country

B $100 worth of grain 2. Country A's firms import from Country C $500 worth of steel 3. Country A's residents buy Country C's government bonds for $1000 4. Country A's workers resident in Country B receive $500 in wages 5. Country A's residents receive $50 in interest from Country C's bonds they owned 6. Country A's residents pay $100 in dividends on Country C's investments in Country A 7. Country A's central bank acquires $1000 worth of Country C's currency What is the net contribution to the Current Account Balance of Country A of these entries? You need to select the entries that constitute current account entries, and then decide which one are credits and which one are debits. Finally, sum up the contributions of these entries.
Business
1 answer:
serious [3.7K]3 years ago
5 0

Answer:

The net contribution to the Current Account Balance of Country A is $50

Explanation:

The credit entries include those entries which bring the money into the economy whereas the debit entries are those entries in which the expenses are more incurred or we can say more outflow of cash is there.

The debit and credit entries are shown below:

Debit entries:

1.  Country A's firms import from Country C $500 worth of steel

2. Country A's residents buy Country C's government bonds for $1000

3.  Country A's residents pay $100 in dividends on Country C's investments in Country A

Credit entries:

1. Country A's firms export to Country B $100 worth of grain

2. Country A's workers resident in Country B receive $500 in wages

3. Country A's residents receive $50 in interest from Country C's bonds they owned

4. Country A's central bank acquires $1000 worth of Country C's currency

Now the net contribution of the current account balance would be

= Total credit balance - total debit balance

= $100 + $500 + 50 + $1,000 - $500 - $1,000 - $100

= $50

The negative amount represents debit balance whereas the positive amount reflect a credit balance

You might be interested in
mark and shirley, married filing jointly with a modified adjusted gross income (magi) of $92,300, adopted their son, matthew in
kap26 [50]

Answer:

$14890 is the correct option because if any parent adopts a child in 2022  there is a federal adoption tax credit of up to $14,890 per child.

<h3>Claiming the Federal Adoption Tax Credit for 2022</h3>

A federal adoption tax credit of up to $14,890 per child is available for adoptions that are finalized in 2022. The adoption tax credit for 2022 is not transferable.

Parents who wish to receive the credit must:

have adopted a child who is not a stepchild - The child must be less than 18 or incapable of caring for themselves due to physical or mental impairment.

abide by the income restrictions - How much of the credit parents can claim depends on their income. Families earning less than $214,520 in modified adjusted gross income in 2022 are eligible for the full credit. People who earn between $223,410 and $263,410 can receive a partial credit; people who earn more than $263,410 cannot.

To know more about 'Adoption tax credit', visit :brainly.com/question/15410304

#SPJ4

6 0
1 year ago
Leno Company sells goods to the Fallon Company for​ $10,000. It offers credit terms of​ 2/10, n/30. If Fallon Company pays the i
Zinaida [17]

Answer:

Leno Company will record a debit to Cash in the amount​ of: D. ​$9,800

Explanation:

The terms of 2/10, n/30 means 2% discount for the payment within 10 days and the full amount to be paid within 30 days.

Fallon Company pays the invoice within the discount​ period - early enough to receive a 2% discount. The discount amount is 2% x $10,000 = $200.

On the other hand, Leno Company has to offer a 2% discount to Fallon Company. Cash amount Leno Company receives = $10,000 - 2% x $10,000 = $9,800

Leno Company will record a debit to Cash in the amount​ of $9,800

6 0
3 years ago
If the Federal Reserve is late to recognize a recession and implements an expansionary policy too​ late, the result could be an
kherson [118]

Answer:

A. Procyclical policy.

Explanation:

Procyclical policy is basically is a government approach to increase goverment spending and reduces taxes while government is going through economic expansion.

4 0
3 years ago
An entrepreneur establishes a social justice online retail company. The company purchases authentic artwork, jewelry and crafts
Greeley [361]

Answer:

a. Developing a robust marketing program to promote the social justice elements of the business and gain insights into consumer purchasing behavior on the website

Explanation:

In order to sustain the business, the entrepreneur should create a robust marketing program in which he is able to promote the components of social justice and also the behavior of the consumer on the website so that he gets to know how much people are active in his website, what are the problem people are facing, etc

Hence, the correct option is a

3 0
2 years ago
Timmons corporation purchases office supplies for $350 cash. how would this transaction be recorded?
andrezito [222]

Timmons Corporation purchases office supplies for $350 cash. Debit Supplies $350, credit Cash $350.

A legal entity is an organization (usually a group of people or a legal entity) authorized by the State to act as a single entity and legally recognized as such for a specific purpose. Early incorporated entities were established by charter. Most jurisdictions now allow the formation of new companies through registration.

A corporation is a business entity owned by shareholders who elect a board of directors to oversee the activities of the organization. A company is responsible for its actions and finances, but its shareholders are not.

Learn more about Corporation here:brainly.com/question/13551671
#SPJ4

5 0
1 year ago
Other questions:
  • Which of the following is not a common term for a mortgage loan? A. 30 years B. 20 years C. 15 years D. 10 years
    6·1 answer
  • On April 1, Alliance Company purchased $50,000 of Tetter Company's 12% bonds at 100 plus accrued interest of $2,000. On June 30,
    14·2 answers
  • is often costly for developing countries to adjust to trade agreements because A. trade agreements systematically expect more li
    10·2 answers
  • The budget is one of the three values of earned value management and is also known as _____. a. actual cost b. indirect cost c.
    9·1 answer
  • Vincent is interested in increasing his earning potential upon completing his internship at a major accounting firm. Which optio
    5·1 answer
  • Which feature of a customs union differentiates it from a free trade area?
    5·1 answer
  • Which of the following statements is true regarding innovation in organizations?A) Organic structures negatively influence innov
    10·1 answer
  • Question 2 Multiple Choice Worth 10 points)
    15·1 answer
  • What is globalization?
    8·2 answers
  • These bonds are not backed by any physical collateral. They are backed by the reputation and creditworthiness of the issuing com
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!