Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

13. How will the following transactions be recorded in US Balance of Payment Account? in which categatory? debit or credit? a) The US exports $2000

13. How will the following transactions be recorded in US Balance of Payment Account? in which categatory? debit or credit?

a) The US exports $2000 of goods to the UK in exchange for 1000 of services. The exchange rate is 1=$2.

b) US Boeing exports a $100 million aircraft to the British Airways. The British importer pays by debiting its US bank deposit account. The exchange rate is 1=$2.

c) US Boeing exports a $100 million aircraft to the British Airways. The British importer pays by debiting its UK bank deposit account, and transfer the money to the UK bank account of Boeing. The exchange rate is 1=$2

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Ethical Obligations and Decision Making in Accounting Text and Cases

Authors: Steven M. Mintz, Roselyn E. Morris

5th edition

1259969460, 73403997, 1260480852, 978-1259969461

More Books

Students also viewed these Accounting questions

Question

What is a cost-benefit analysis?

Answered: 1 week ago

Question

2. Information that comes most readily to mind (availability).

Answered: 1 week ago