Please list which account these transactions fall into from the U.S. perspective
ID: 1103687 • Letter: P
Question
Please list which account these transactions fall into from the U.S. perspective (you do not need to explain the second half of the double entry bookkeeping, just the first part): a. American buys a German car b. U.S. firm buys oil from Mexico c. German firm buys U.S. software d. German firm pays a dividend to a U.S. shareholder e. German firm buys a U.S. software company f. Resident in the U.S. sends money home to a relative in South Korea g. Bank of Japan buys U.S. treasury bills h. U.S. pension fund buys stock in a company in the Philippines i. American buys a can of Coke. j. U.S. forgives debt from Tanzania k. U.S. citizen receives interest on a bank account held in London l. American citizen donates money to disaster relief in Pakistan m. American eats a meal while visiting Mexico
Explanation / Answer
a. American buys a German car - DEBIT to America as its money went to another country as there revenue.
b. U.S. firm buys oil from Mexico - DEBIT
c. German firm buys U.S. software - CREDIT, as cash inflows in return of software.
d. German firm pays a dividend to a U.S. shareholder- CREDIT
e. German firm buys a U.S. software company- CREDIT
f. Resident in the U.S. sends money home to a relative in South Korea - DEBIT, as money went to other nation without any return.
g. Bank of Japan buys U.S. treasury bills- CREDIT
h. U.S. pension fund buys stock in a company in the Philippines - CREDIT
i. American buys a can of Coke.- CREDIT if coke is american company and the vice versa.
j. U.S. forgives debt from Tanzania - DEBIT
k. U.S. citizen receives interest on a bank account held in London - CREDIT
l. American citizen donates money to disaster relief in Pakistan - DEBIT
m. American eats a meal while visiting Mexico - DEBIT.