Question

In current account accounting, an import of goods or services is recorded as a:

Options

• Credit (+)

• Net lending entry

• Unilateral transfer receipt

• Debit (-)

Answer 1

Imports of goods and services involve payments to the rest of the world, so they are recorded as Debits $(-)$ in the current account. Exports and receipts, which bring funds into the country, are recorded as Credits $(+)$.