If a Canadian company receives payment for consulting services provided to a company in another country,the receipt is recorded in the _____________.
A)capital account
B)current account
C)income account
D)balance of payments account

Question

Quizplus · Accepted Answer

The current account records the inflow and outflow of goods, services, and transfers between a country and its trading partners. Receipts for consulting services provided by a Canadian company to a company in another country would fall under services in the current account. The capital account records capital transfers and the acquisition or disposal of non-produced, non-financial assets, while the income account records income earned by domestic factors of production from foreign sources and income earned by foreign factors of production from domestic sources. The balance of payments account is a statement of all economic transactions between two countries over a specific period.

If a Canadian Company Receives Payment for Consulting Services Provided