(Table) for the Balance of Payments to Be in Balance

question 203

Multiple Choice

(Table) For the balance of payments to be in balance, the

• A) capital account must be $600 billion.
• B) statistical discrepancy must be $100 billion.
• C) statistical discrepancy must be $50 billion.
• D) capital account must be $650 billion.

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Definitions:

FIFO Cost Flow

An inventory valuation method in which the costs of the earliest goods purchased are the first to be recognized in determining cost of goods sold.

Current Costs

These are the costs that are associated with the purchase or production of goods and services in the current period.

Current Revenues

Income recognized by a business within its fiscal year, typically from its main operations.

LIFO Cost

An inventory valuation method that assumes the last items placed in inventory are the first sold, implying newer inventory remains unsold.