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RoseWind [281]
3 years ago
8

An article in the Wall Street Journal refers to​ "debt-strapped emerging markets already struggling with​ current-account defici

ts." ​Source: Anjani​ Trivedi, "Emerging Markets Suffer Largest Outflow in Seven​ Years," Wall Street Journal​, June​ 12, 2015. We would expect that countries running large current account deficits also have substantial foreign debts because the sum of the
A. current account and the capital account must equal zero.
B. trade account and the financial account must equal zero.
C. current account and the financial account must equal zero.
D. capital account and the financial account must equal zero.
Business
1 answer:
Marrrta [24]3 years ago
5 0

Answer: The answer is A

Explanation:

The balance of payment is the relationship between a country's receipt from other countries and payments to other countries. In short, the balance of payment is a country's statement of income and expenditure in the international account. It includes payments for both visible and invisible items of trade. Linking the two sides payment and receipt or debit or credit of the balance of payments, we therefore have two sections of the account which are

Current Account : The current account deals with the payment for currently produced goods and services. The current account shows income and expenditure on visible and invisible imports and exports as well as payments and receipt on banking, shipping, insurance, and other services.

Capital Account : This shows the actual transfer of money from one country to the other.money may be transferred from one country to the other for a number of reasons .It may be used for setting up industries (investment ) and it may be a direct loan. The balance of payment could be favourable or unfavourable, a favourable balance of payment is the excess of receipt from export over payment for imports, its unfavourable if the payments for imports exceed the receipt for export. This unfavourable balance of payment put a country in a debtor position and requires the movement of resources outside the country to pay the deficit balance. A favourable balance changes the direction of the resources flow in favour of the creditor nation.

In principle, the balance of payment must always balance just as the two sides of a balance sheet must agree in total. This shows the movement of funds or other resources from one country to another,and the direction of flow of funds being determined by the debtor and creditor status of the country.

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Multiple-Choice Questions on Consolidation Overview [AICPA Adapted]
boyakko [2]

Answer: 1. D. Economic entity

2. C. Circumstances prevent the exercise of control.

3. B. Consolidation used for both Sell and Vane.

4. B. In form, the companies are separate; in substance, they are one entity

Explanation:

1. When a parent–subsidiary relationship exists, it can be infered that consolidated financial statements will be prepared in recognition of the accounting concept of economic entity.

2. Consolidated financial statements are prepared when one company has a controlling interest in another unless the circumstances prevent the exercise of control.

3. Based on the information given, in Penn’s consolidated financial statements, it should be noted that Sell and Vane should be consolidated. Therefore, the correct option is B.

4. The best theoretical justification for consolidated financial statements is that in form, the companies are separate while in substance, they are regarded as one entity.

4 0
3 years ago
When interacting with a small number of rival​ firms, a manager uses a?
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6 0
3 years ago
Which of the following is true?
kifflom [539]

Answer:

the correct option is c) change in the money wage and other resource prices does not shift the long run aggregate supply

Explanation:

First of all aggregate supply can be defined as the sum total of all the goods and services that are supplied in the economy during a defined period of time.

In the given question the option C is right because it is assumed that in the case of long run aggregate supply , the supply curve tends to remain static because any kind of change in the aggregate demand causes only temporary changes in the total output of the economy and the slope of the curve remains vertical. It is also assumed that the economy is being used at optimal as only factors like labor, capital, and technology can bring in aggregate supply.

Options a) and b) can't be true because if the supply curve is gonna shift , it is first going to shift in short run aggregate supply then long run aggregate supply , not the other way around.

6 0
3 years ago
Jackson, Inc. produces two different products (Product 5 and Product Z) using two different activities: Machining, which uses ma
Anettt [7]

Answer:

The total Inspection cost assigned to Product Z $ 21,600

Explanation:

Jackson, Inc.

                        Total                      Product 5             Product Z

                        Cost                    %         Amount        %    Amount                                  

Machining,    $306,000,          35       107,100         65     198,900

<u>Inspection      $46,000            40       18,400           60      21,600 </u>

<u>Total                                                    $  125,500                  $ 220,500</u>

<u />

The total Inspection cost assigned to Product Z $ 21,600

The total Machining cost assigned to Product Z $ 198,900

The total Inspection cost assigned to Product 5  $ 18,400

The total Machining cost assigned to Product 5 $ 107,9100

6 0
3 years ago
Kevin, an electrical engineer, comes to work every day with a positive attitude. He has many goals, and he knows that he will ha
UNO [17]
A and E are the answers to this problem
5 0
3 years ago
Read 2 more answers
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