The purchase of a U.S. confectionary manufacturer by an English company falls under the financial account, resulting in an outflow of funds from the U.S. and considered a foreign investment in U.S. assets.
When an English company purchases a U.S. confectionary manufacturer, the transaction is categorized under the financial account of the United States.
In this case, money is flowing out of the U.S. and into the English company's account, signifying an influx of foreign investment.
The financial account reflects such types of transactions where funds are transferred in exchange for ownership of U.S. assets.
This would increase the financial account as a debit (a liability or a foreign ownership of U.S. assets) because the assets are being transferred to foreign ownership.