Which of the Following Is Not True of the Statistical

question 152

Multiple Choice

Which of the following is not true of the statistical discrepancy in the balance of payments?

• A)It is residual.
• B)It is a measure of net error in the balance of payments data.
• C)It is necessary because some transactions go unreported.
• D)An excess of credits in all other accounts must be offset by equivalent debits in the statistical discrepancy account.
• E)A difference between credits and debits is taken care of by changes in the official reserve transaction account.

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Definitions:

Consolidation Adjustment

Adjustments made to financial statements to account for the financial results of subsidiary companies as if they were part of the parent company.

Tax Effect

Refers to the impact of tax laws on an entity's financial statements, specifically how changes in tax rates or laws affect the valuation of assets, liabilities, and net income.

Intragroup Transfers

Transactions of goods, services, or financial assets between divisions or entities within the same group or company.

Retained Earnings

The portion of net income that is retained by a company rather than distributed to its shareholders as dividends.