Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. suppose that home country a has the following reco

Suppose that home country A has the following recorded transactions with foreign country B. Following...

60.1K

Verified Solution

Question

Accounting

image

Suppose that home country A has the following recorded transactions with foreign country B. Following the example below, for each transaction, indicate which item is a debit and which item is a credit (in Country A's the balance of payments) and how the item would be identified in the balance of payments. 4) Example: An importer in country A buys S8,000 of apparel from a country-B supplier, paying for the goods by writing a check to be deposited into the B firm's bank account in a country A bank. Debit S8,000 of imports from country B Credit $8,000 increase in foreign private assets in country A (a) A firm in country A sells $6,000 of steel to a country B firm. Payment is made by the firm in B drawing down its checking account in a country A commercial bank. b) A country A citizens give S1,000-worth of cash to country B relatives by writinga cheque on his bank accounts in country B. (c) A citizen of country B buys a long-term bond of a company in country A. The buyer purchases the S5,000 bond by drawing down his/her checking deposit in a bank in A (d) A firm in country A purchases S3,000 of shipping services from a country B ocean freight carrier, paying for the services by drawing down bank deposits in B owned by the country A firm

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students