Which of the following statements about the accounts in the balance of payment is correct? A....
Which of the following statements about the accounts in the balance of payment is correct?
A.
A country that runs a current account surplus must also run a financial account surplus.
B.
A country that runs a current account surplus may run a financial account surplus or deficit.
C.
A country that runs a current account surplus must run a financial account deficit.
D.
None of the above statements is correct
Homework Answers
The statement B is correct, " A country that runs a current account surplus may run a financial account surplus or deficit"
The BOP of each country depends on trade of goods and services (recorded in Current Account) and Capital flows (recorded in Capital or financial account). Both can be negative or positive depending on economy.
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Which of the following statements about the accounts in the
balance of payment is correct?
A....
Which of the following is NOT true about this national income equation: S + (T - G) = I + CA A) For the current account,...
Which of the following is NOT true about this national income equation: S + (T - G) = I + CA A) For the current account, CA, to improve, we may have to invest less than otherwise would be the case. B) For the current account, CA, to improve, we may have to save less to maintain the same amount of investment that includes foreign saving. C) For the current account, CA, to improve, the government may have to run...
Which of the following statements about the balance sheet is most correct? a. The balance sheet...
Which of the following statements about the balance sheet is most correct? a. The balance sheet provides information about the financial position of an organization as of a moment in time. b. The balance sheet provides detailed information about the assets, liabilities, equity, revenues, and expenses of an organization. c. The balance sheet is affected by changes in the net income of the organization. d. Statements a and c are both correct. e. Statements a, b, and c are all...
Which of the following statements about the balance sheet is most correct? O The balance sheet...
Which of the following statements about the balance sheet is most correct? O The balance sheet provides information about the financial position of an organization as of a moment in time. O The balance sheet provides detailed information about the assets, liabilities, equity, revenues, and expenses of an organization. O The balance sheet is affected by changes in the net income of the organization. O Statements a. and c. are both correct. O Statements a, b, and c. are all...
Which of the following statements about financial statement forecasting methods is most correct? For-profit and not-for-profit...
Which of the following statements about financial statement forecasting methods is most correct? For-profit and not-for-profit businesses use totally different approaches to financial forecasting. In the constant growth (percentage of sales) method, after the first pass the balance sheet is balanced by adjusting the cash account. In the constant growth (percentage of sales) method, after the first pass the balance sheet is balanced by adjusting the equity account. In the constant growth (percentage of sales) method, the balance sheet is...
13.Which of the following statements about an adjusted trial balance is not correct? A It is...
13.Which of the following statements about an adjusted trial balance is not correct? A It is prepared at the beginning of the year. B It is used to prepare financial statements. C It is prepared to ensure that total debits equals total credits D It is prepared after the adjusting journal entries have been made.
QUESTION 14 Which of the following statements is captured by the accounting identity, S+ (T-G)+CA? A...
QUESTION 14 Which of the following statements is captured by the accounting identity, S+ (T-G)+CA? A country with a low savings rate and a government budget deficit needs investment from other countries to supplement its domestic investment funds. A country with a high savings rate and a government surplus has additional funds available to invest in other countries A country that would like to increase its government budget deficit and domestic investment or increase private savings. reduce its current account...
Which of the following statements is correct about prepaid accounts O Prepaid accounts are also called...
Which of the following statements is correct about prepaid accounts O Prepaid accounts are also called prepaid liabilities and are classified as liabilities. O Prepaid accounts are current expense accounts and are reported on the income statement. O Prepaid accounts are also called prepaid expenses and are considered assets. O Prepaid accounts are another name for accounts receivable and are reported as an asset.
Which of the following statements is correct about prepaid accounts O Prepaid accounts are also called...
Which of the following statements is correct about prepaid accounts O Prepaid accounts are also called prepaid expenses and are considered assets. O Prepaid accounts are another name for accounts receivable and are reported as an asset. O Prepaid accounts are current expense accounts and are reported on the income statement. O Prepaid accounts are also called prepaid liabilities and are classified as liabilities.
Which of the following statements about the organization of the balance sheet is most correct? O...
Which of the following statements about the organization of the balance sheet is most correct? O The balance sheet has upper and lower (or left and right) sections. O Assets are divided into current and long-term categories. O Assets are divided into equity and nonequity categories. O Statements a. and b. are both correct. O Statements a. and c. are both correct.
Assume that a country’s balance-of-payments accounts are recorded correctly. If there is no change in a country’s offici...
Assume that a country’s balance-of-payments accounts are recorded correctly. If there is no change in a country’s official reserves account, a surplus in the capital account must be: Multiple Choice None of the options. reflected in an appreciation of the country’s currency. reflected in a decrease in a country’s foreign indebtedness. offset by a surplus in the current account. offset by a deficit in the current account.
Which of the following statements about the balance sheet is most correct? O The balance sheet provides information about the financial position of an organization as of a moment in time. O The balance sheet provides detailed information about the assets, liabilities, equity, revenues, and expenses of an organization. O The balance sheet is affected by changes in the net income of the organization. O Statements a. and c. are both correct. O Statements a, b, and c. are all...
QUESTION 14 Which of the following statements is captured by the accounting identity, S+ (T-G)+CA? A country with a low savings rate and a government budget deficit needs investment from other countries to supplement its domestic investment funds. A country with a high savings rate and a government surplus has additional funds available to invest in other countries A country that would like to increase its government budget deficit and domestic investment or increase private savings. reduce its current account...
Which of the following statements is correct about prepaid accounts O Prepaid accounts are also called prepaid liabilities and are classified as liabilities. O Prepaid accounts are current expense accounts and are reported on the income statement. O Prepaid accounts are also called prepaid expenses and are considered assets. O Prepaid accounts are another name for accounts receivable and are reported as an asset.
Which of the following statements is correct about prepaid accounts O Prepaid accounts are also called prepaid expenses and are considered assets. O Prepaid accounts are another name for accounts receivable and are reported as an asset. O Prepaid accounts are current expense accounts and are reported on the income statement. O Prepaid accounts are also called prepaid liabilities and are classified as liabilities.
Which of the following statements about the organization of the balance sheet is most correct? O The balance sheet has upper and lower (or left and right) sections. O Assets are divided into current and long-term categories. O Assets are divided into equity and nonequity categories. O Statements a. and b. are both correct. O Statements a. and c. are both correct.
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