ACCT 211 Lecture Notes - Lecture 1: Double-Entry Bookkeeping System, Net International Investment Position, Cheque
15 Jan 2017
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Document Summary
Balance of payments (bop) a set of accounts that summarises the transactions between residents of an economy with the rest of the world for a given period of time (1yr) transactions which result in: A payment to foreigners is entered as a debit and a negative (-) in. A receipt (incoming) of foreigners is entered as a credit and takes a positive (+) in bop, such as exports. Example of car purchase by dutch (debit, since import). Rabo (credit, since to a dutch bank from foreigner). Current account: good balance, service balance, netto income receipts (nir) & netto uni transfers: capital account, financial account: foreign direct investments, portfolio investing flows & official reserve transactions, static discrepancy. Refers tot trade in goods that cross a border. Same as (equivalent) to netto flow of good. When the netto export of goods is higher, more money flows in than out, therefore: surplus.
