Which One of the Following, Other Things Equal, Will Directly

question 140

Multiple Choice

Which one of the following, other things equal, will directly alter the U.S. balance of trade?

• A) an increase in the balance on capital account
• B) a decrease in U.S. goods exports
• C) an increase in net transfers
• D) a decrease in U.S. purchases of assets abroad

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Definitions:

Vertical Analysis

A method of financial statement analysis in which each line item is listed as a percentage of a base figure within the statement.

Common Size Analysis

An analytical technique that converts each line of financial statement data to a percentage of a base amount, facilitating the comparison across different companies or periods.

Ratio Analysis

A financial analysis tool used to assess a company's performance and financial health by calculating ratios from the data in financial statements.

Inventory Turnover

Inventory turnover is a ratio showing how many times a company has sold and replaced inventory over a given period.