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3 years ago

The current account is best defined as:

Business

1 answer:

stiks02 [169]3 years ago

4 0

Answer:

The account that includes transactions like imports and exports, income earned by Americans abroad, and net transfers to other countries.

Explanation:

A current account can be defined as an account that record the different transactions a country carries out with another country. A current account comprises of net primary income, earnings from foreign investors that have occurred within a particular period of time.

Almost all countries are involved in trading of goods and services with another country, a current account helps to evaluate the manner in which a particular country traded their different goods with foreign markets.There tends to be a postive balance of a country exports more goods than it imports.

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Prepare the issuer's journal entry for each of the following separate transactions. On March 1, Atlantic Co. issues 44,500 share

steposvetlana [31]

Answer and Explanation:

The journal entries are shown below;

On March 1

Cash A/c $303,500

To Common Stock $3 Par value (44,500 × $3) $133,500

To Paid in capital in excess of par value $170,000

(Being the common stock issued is recorded)

On April 1

Cash $74,000

To Common Stock, no par value $74,000

(Being the common stock issued is recorded)

On April 6

Inventory $43,000

Machinery $155,000

To Common Stock (2,400 ×$20) $48,000

To Notes payable $93,000

To Paid in capital in excess of par value $57,000

(Being the shares are issued)

3 0

3 years ago

If title to merchandise purchases passes to the buyer when the goods are shipped from the seller, the terms are.

BigorU [14]

FOB shipping point

Explanation:

FOB affects the buyer's inventory cost adding liability for shipped goods increases inventory costs and reduce net income.

3 0

2 years ago

Peter Lynchpin wants to sell you an investment contract that pays equal $22,500 amounts at the end of each of the next 20 years.

Effectus [21]

Answer:

The amount to be paid for the contract today = $220,908.32

Explanation:

<em>The amount to be paid for the contract today will be equal to the present value of the annuity of $22,500 payable for 20 years discounted at a rate of 8% per annum.</em>

Present Value = A ×( 1 - (1+r)^(-n))/r

A- 22,500, r- rate of return - 8%, n -no of years 20 years

PV = 22,500 ×( 1-(1.08)^(-20) )/ 0.08

PV = 22,500 ×9.8181

PV = $220,908.32

The amount to be paid for the contract today = $220,908.32

7 0

3 years ago

Germans have not been overly receptive to the use of credit cards such as visa or mastercard and installment debt to purchase pr

guapka [62]

<span>Because of a difference in values from American consumers, Germans have not been overly receptive to installment debt to purchase products and services and the use of credit cards such as visa or Mastercard. The German Schuld which means debt also means guilt.</span>

7 0

3 years ago

Below is activity for A Company during the year. Sold Equipment for $65,000. Purchased new Equipment for $140,000 Issued bonds f

Naddik [55]

Answer:

Net Cash inflow (outflow) from Investing activities ($75,000)

Net Cash inflow (outflow) from Financing activities ($20,000)

Explanation:

The computation of the Investing and Financing is shown below:-

A Company

Cash Flow Statement

Cash Flow from Investing Activities

Sale of Equipment $65,000

Purchase of new equipment ($140,000)

Net Cash inflow (outflow) from Investing activities ($75,000)

Cash Flow from Financing Activities

New Bond issuance $100,000

Paid dividends ($20,000)

Sale of Common Stock $200,000

Paid Notes Payable ($300,000)

Net Cash inflow (outflow) from Financing activities ($20,000)

7 0

3 years ago