When a U.S. subsidiary in another country remits profits back to its parent in the U.S., the receipt of profits is recorded in the ________.
A) income receipts account and given a plus sign
B) income receipts account and given a minus sign
C) income payments account and given a plus sign
D) income payments account and given a minus sign

Question

Quizplus · Accepted Answer

The receipt of profits from a foreign subsidiary is recorded as an income receipt in the U.S. balance of payments, and it is given a plus sign because it represents an inflow of funds into the U.S.

When a US Subsidiary in Another Country Remits Profits Back to Its