How Do You Measure the Current Account Balance

question 125

Multiple Choice

How do you measure the current account balance?

• A) net exports - inflow of interest payments
• B) net exports - net inflow of dividends and interest payments
• C) net exports + net inflow of dividends and interest payments
• D) net inflow of dividends and interest payments - net exports

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Definitions:

Petty Cash

A small amount of cash on hand used for minor or incidental expenses.

Ledger Account

A set of accounts in a ledger that provides a record of financial transactions categorized by account type.

Record-Keeping Function

The systematic process of organizing and maintaining financial documents and records of a company.

Voucher System

A control or accounting system where vouchers (documents that prove a transaction) are used to authorize and record transactions in an accounts payable system.