Question: For each transaction below identify where it appears in Canada's capital and financial accounts and whether it is classified as a receipt or payment. a.

For each transaction below identify where it appears in Canada's capital and financial accounts and whether it is classified as a receipt or payment.

a. A Canadian receives a financial bequest from a relative in Lebanon.

This transaction appears on Canada's capital and financial accounts as part of (Click to select) portfolio investment direct investment other financial investments the capital account . It is classified as a (Click to select) receipt payment .

b. An American investment fund buys a Canadian retail chain.

This transaction appears on Canada's capital and financial accounts as part of (Click to select) other financial investments the capital account portfolio investment direct investment . It is classified as a (Click to select) receipt payment .

c. A Canadian firm buys 5 percent of the outstanding shares of an Israeli corporation.

This transaction appears on Canada's capital and financial accounts as part of (Click to select) the capital account other financial investments portfolio investment direct investment . It is classified as a (Click to select) receipt payment .

d. A Spanish company interested in investing in Canada opens a Canadian bank account.

This transaction appears on Canada's capital and financial accounts as part of (Click to select) direct investment the capital account portfolio investment other financial investments . It is classified as a (Click to select) receipt payment .

e. A Canadian business owner buys a trademark from an Indian company.

This transaction appears on Canada's capital and financial accounts as part of (Click to select) the capital account other financial investments portfolio investment direct investment . It is classified as a (Click to select) payment receipt .

f. A Canadian wealth holder starts a US-based computer company.

This transaction appears on Canada's capital and financial accounts as part of (Click to select) other financial investments the capital account direct investment portfolio investment . It is classified as a (Click to select) receipt payment .

g. A Norwegian investment fund buys a bond issued by a Canadian electrical utility.

This transaction appears on Canada's capital and financial accounts as part of (Click to select) other financial investments the capital account direct investment portfolio investment . It is classified as a (Click to select) payment receipt .

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!