The Net Balance of Payments Is

question 64

Multiple Choice

The net balance of payments is

• A)The difference between exports and imports.
• B)The difference between the current account balance and the capital account balance.
• C)The sum of the current account balance and the trade account balance.
• D)The sum of the current account balance and the capital account balance.

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Definitions:

Depreciation Tax Shield

The tax savings achieved by a company from the allowance for depreciation expenses, reducing taxable income.

Depreciable Basis

The initial cost of an asset that can be depreciated over time for tax purposes, minus any salvage value.

Tax Savings

The reduction in income taxes that results from taking a permissible deduction from taxable income.