In Basic Terms,the Current Account Is Equal to

question 2

Multiple Choice

In basic terms,the current account is equal to

• A)imports plus exports.
• B)savings minus consumption.
• C)exports minus imports.
• D)savings plus exports.

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Definitions:

Debt Paying Ability

Debt paying ability indicates an entity's capacity to repay its debt obligations based on its financial situation, including liquidity ratios and income.

Acid-test Ratio

A stringent indicator of a company's liquidity, calculating its ability to cover short-term obligations with its most liquid assets, excluding inventory.

Inventory Turnover

A measure of how often a company's inventory is sold and replaced over a certain period of time, indicating efficiency in inventory management.

Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue.