An Unfavourable Balance of Trade Occurs When

question 65

Multiple Choice

An unfavourable balance of trade occurs when

• A) exports are greater than imports.
• B) imports are greater than exports.
• C) the total outflow of money is greater than the total inflow of money.
• D) the total outflow of money is less than the total inflow of money.
• E) exports equal imports.

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Definitions:

Cash Sales

Transactions where payment is made in cash at the time of sale, without any credit terms.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period.

Cost of Goods Sold

A financial metric that represents the direct costs attributable to the production of the goods sold by a company.

Ending Inventory

The total value of all goods available for sale at the end of an accounting period.