The ¥2,000 train ride in Wonderland taken by a lady from Neverland, which was paid for via a credit card, would result in a ______ to Neverland’s ______ to reflect the trade of a service.

Question

BlackTom AI · Accepted Answer

An outbound payment for a foreign service is recorded as a debit in the current account. Relevant concepts: the balance of payments has two main parts relevant here — the current account (records trade in goods and services, primary and secondary income) and the capital/financial account (records cross-border asset/liability changes). Debits in the current account represent payments to nonresidents for imports of goods or services (an outflow of purchasing power), while credits represent receipts from foreigners (exports, inflows).

Step-by-step reasoning:
1. Identify the transaction: A Neverland resident (the lady) consumes a train ride in Wonderland. That is Neverland consuming a foreign service — i.e., an import of services for Neverland.
2. Determine which account records trade in services: Service transactions belong in the current account (under services).
3. Determine debit or credit: Imports of services are payments to nonresidents, so they are recorded as debits in the current account. Numerically, Neverland’s current account records a −¥2,000 entry under services (a debit of ¥2,000).
4. Note the payment method: Payment by credit card affects the timing and counterpart entry (it typically creates a financial liability or a short-term credit in the financial account to the card issuer or foreign bank), but it does not change that the service trade itself is a current account debit.

Why the correct answer is correct: Because the transaction is an import of a service by a Neverland resident, it reduces Neverland’s net current account balance — recorded as a debit in the current account for ¥2,000.

Why the other choices are incorrect:
- “debit; capital”: the capital/financial account, not the current account, records asset/liability changes, not the trade-in-services entry.
- “credit; current”: a credit in the current account would imply Neverland exported the service (a receipt), which is the opposite of this case.
- “credit; capital”: both wrong — the trade is not a capital account credit.

Final confirmation: the correct fill is “debit; current,” matching the provided answer.

The ¥2,000 train ride in Wonderland taken by a lady from Neverland, which was paid for via a credit card, would result in a to Neverland’s to reflect the trade of a service.单项选择题

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The ¥2,000 train ride in Wonderland taken by a lady from Neverland, which was paid for via a credit card, would result in a ______ to Neverland’s ______ to reflect the trade of a service.单项选择题

类似问题

A Neverland company pays a Wonderland ¥3 million for the local franchise rights. This will result in a ______ to Wonderland’s ______.

An unqualified accountant entered a $36 debit entry as credit entry. This:[Fill in the blank]

An unqualified accountant entered a $36 debit entry as credit entry. This:[Fill in the blank]

The Surfboard Centre paid $5,000 cash for inventory. These boards are on display in their showroom. This transaction will:

When a company receives cash before products or services are provided the following results:

Which of the following best describes the double-entry rule?

Which of the following best describes the double-entry rule?

更多留学生实用工具

希望你的学习变得更简单

The ¥2,000 train ride in Wonderland taken by a lady from Neverland, which was paid for via a credit card, would result in a to Neverland’s to reflect the trade of a service.单项选择题

A Neverland company pays a Wonderland ¥3 million for the local franchise rights. This will result in a to Wonderland’s .