Debit entries on the balance of payments are the entries that would ?
Correct answer: A. mean a loss of foreign exchange
- A. mean a loss of foreign exchange
- B. bring foreign exchange into the country
- C. indicate a surplus exist
- D. exist at the bottom line after all accounts are totaled
Explanation
A debit entry represents a payment to foreigners or another transaction that uses foreign exchange, so it records an outflow or loss of foreign exchange. Bringing foreign exchange into the country is recorded as a credit.
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