Match the Term with Its Definition

question 58

Multiple Choice

Match the term with its definition.
-Operating, investing, and financing activities that result in cash inflows or outflows

• A)accrued expenses
• B)cash flow activities
• C)cost of goods sold
• D)gross profits
• E)long-term debt
• F)long-term note
• G)net profits
• H)operating profits
• I)profit margins
• J)profits before taxes (taxable income)
• K)short-term notes
• L)statement of cash flows

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Definitions:

Merchandise Trade Deficit

A country's merchandise trade deficit occurs when its imports of physical goods exceed its exports within a given period.

International Trade

The exchange of goods and services between countries, driven by the differences in costs of production, resource distribution, and various other factors.

Comparative Advantage

The ability of a country or firm to produce a particular good or service at a lower opportunity cost than its competitors.

Absolute Advantage

The ability of a country, individual, company, or region to produce a good or service at a lower cost per unit than the cost at which any other entity produces that good or service.