Question

Classify the following transactions (current account transaction, financial account transaction), the sign of entry (plus or minus/ debit or credit). Choose one country of reference

. a). Walmart issues a corporate bond in the UK

b). A German tourist rents a car in Iceland

c). A U.S. worker in Canada wires money back to his family in the U.S.

d). A French company builds a plant in South Africa

e). Toyota exports cars to Spain.

Answer 1

A)Walmart issues a corporate bond in the UK

Financial account transaction because it is liabilitiy not related to revenue

Sign of entry credit it is receipt of foreign currency

B)a German tourist rents a car in ice land

Current account transaction it is not related to asset . It is in the revenue nature

Sign of entry credit it is receipt of foreign currency

C)a us worker in Kanda wires money back to his family in the us

Current account transaction it is not related to aquisition of asset

Sign of entry credit it is receipt of foreign currency

D)a French company builds a plant in South Africa

Financial account transaction it is related to aquisition of asset

Sign of entry debit it is payment of foreign currency

E)Toyota exports cars to Spain

Current account transaction it is related to revenue

Sign of entry credit it is receipt of foreign currency

Country of reference United States