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Why Must the Balance-Of-Payments Record Always Be in Balance? What

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Why must the balance-of-payments record always be in balance? What does a balanced record signify?


Definitions:

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time.

Revenue

The total amount of money earned by a business from its operational activities, before any expenses are subtracted.

Equipment Account

An account on a company's balance sheet that reports the value of the equipment that the company owns.

Beginning Balance

The amount of money in an account at the start of a new accounting period.

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