Other Things Being Equal,an Increase in the Current Account Deficit

question 86

Multiple Choice

Other things being equal,an increase in the current account deficit could be due to

• A)an increase in private saving.
• B)a decrease in private saving.
• C)a fall in domestic investment.
• D)a fall in the government's budget deficit.
• E)a rise in the budget surplus.

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Definitions:

Purchases

In accounting, refers to the acquiring of goods or services that are necessary for the operation of a business or for resale.

Cost Of Merchandise Sold

The total cost of acquiring or manufacturing the goods that were sold to customers during a period.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent ones, preparing the books for the next period.

Customer Refunds Payable

A liability account representing the amount of money owed by a company to customers for returned goods or cancelled services.