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Anna [14]
3 years ago
15

The current account includes __________. a. the export and import of goods and services. b. all purchases and sales of assets su

ch as stocks, bonds, bank accounts, real estate, and businesses. c. all purchases and sales of international reserve assets such as dollars, foreign exchanges, gold, and special drawing rights (SDRs). d. none of the options
Business
1 answer:
umka2103 [35]3 years ago
6 0

Answer:

A. The export and import of goods and services

Explanation:

The current account refers to the trade balance of a country. It is the record of a country's transactions with the rest of the world.

Current account includes imports and exports of goods and services, payments made to foreign investors, and transfers such as foreign aid.

The current account of a country can either be a surplus (positive) or a deficit (negative).

Surplus current account is when a country's export is greater than its import.

Deficit current account is when a country's export is less than its import.

Import refers a situation where a country buys goods from another country.

Export refers to a situation where a country sells to other countries of the world.

The current account is a part of the balance of payments, the other part is the capital or financial account.

Financial/capital account measures cross-border investments in financial instruments and changes in central bank reserves.

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Which of the following terms refers to a promise made to lenders by a borrower?
Natali5045456 [20]

Answer:

Covenant.

Explanation:

A covenant in business context refers to a formal debt agreement between a lender and a company that specific actions will or will not be undertaken.

4 0
3 years ago
A multinational company that acts with _____ has offices, manufacturing plants, and distribution facilities in different countri
Scorpion4ik [409]
A multinational company that acts with DEFINE GLOBAL CONSISTENCY has offices ..................... Define global consistency is a strategies used by companies that have branches in other countries of the world to maintain same corporate governance in all these branches. Things are done in all these companies in the same way for similar situations. Define global consistency make thing easier for managers at the branches when it comes to decision making. 
4 0
3 years ago
In year 1, Kris purchased a new home for $200,000 by making a down payment of $150,000 and financing the remaining $50,000 with
blondinia [14]

Answer: D. $7,500

Explanation:

Before the $150,000 mortgage at 5%, the existing $40,000 balance of the loan was paid off. Therefore, only the mortgage was payable. At 5% x %150,000 = $7500 interest.

Therefore, the amount $7500 interest expense Kris will deduct as home related interest expense would be $7,500.

4 0
3 years ago
On January 1, 2020, Tamarisk Corporation issued $700,000 of 9% bonds, due in 8 years. The bonds were issued for $740,784, and pa
EleoNora [17]

Answer:

Cash   740,783 debit

  Bonds payable    700,000 credit

  Premium ob BP      40,783 credit

--to record issuance--

Interest expense 29,631.32 debit

premium on BP      1,868.68 debit

         cash                     31,500  credit

--to reocrd first interest payment--

Interest expense 29,556.57 debit

premium on BP      1,943.43 debit

     interest payable          31,500  credit

--to record accrued interest at year-end on BP--

Explanation:

procceds                      740,783

face value                <u>     700,000    </u>

premium on bonds payable 40,783

When comparing, the firm received more than the face value hence, there is a premium on the bonds as the coupon payment are above the market rate.

Now, the interest will be calculate as follow:

carrying value x market rate:

740,783 x 0.08/2 = 29,631.32 interest expense

cash outlay:

700,000 x 0.09/2 = 31,500

amortization on premium (difference) 1,868.68

new carrying value: 740,783 - 1,868,68 = 738,914

second payment accrual:

738,914 x 0.04 = 29,556.57

cash outlay                  31500

amortization    1,943.43

7 0
3 years ago
Nike Inc is one of the world leading atheletic shoes manufacturer. The following activities occurs during the recent year: Purch
Ksenya-84 [330]

Explanation:

The journal entries are shown below:

1. Building A/c Dr $176

  Equipment A/c Dr $270

               To Cash A/c $408

                To Note payable A/c $38

(Being the building and the equipment is purchased for cash and note payable)

2. Cash A/c Dr $345

        To Common stock $240 (120 shares × $2)

        To Additional paid in capital A/c - Common stock A/c $105

(Being the common stock is issued for cash)

3. Retained earnings A/c Dr $145

            To Dividend payable A/c $145

(Being the dividend is declared)

4. Short - term investment A/c Dr $7,616

            To Cash A/c $7,616

(Being the short term investment is purchased for cash)

5. No journal entry is required

6. Cash A/c Dr $4,413

           To Short - term investment A/c $4,413

(Being the short-term investment is purchased)

8 0
3 years ago
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