The Plus Items in the Table Are "Export-Type" Entries and

question 232

Multiple Choice

$$\begin{array} { | l | r | } \hline \text { (1) Goods Exports } & + \$ 200 \\\hline \text { (2) Balance on Capital Account } & 0 \\\hline \text { (3) Net Transfers } & 0 \\\hline \text { (4) Imports of Services } & - 100 \\\hline \text { (5) Net Investment Income } & 0 \\\hline \text { (6) US Purchases of Assets Abroad } & - 50 \\\hline \text { (7) Goods Imports } & - 250 \\\hline \text { (8) Foreign Purchases of Assets in the US } & + 150 \\\hline \text { (9) Exports of Services } & + 50 \\\hline\end{array}$$ The plus items in the table are "export-type" entries and the minus items are "import-type" entries in the balance of payments for the hypothetical country of Zippo. Zippo has a

• A) current account surplus.
• B) ?nancial account de?cit.
• C) ?nancial account surplus.
• D) surplus on goods and services.

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Definitions:

FIFO Cost Flow

An inventory valuation method where the first items purchased are the first ones to be sold, assuming costs rise over time.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated by adding purchases to the beginning inventory and subtracting the cost of goods sold.

Laptop Computers

Portable personal computers designed for mobile use, characterized by a screen and a keyboard.

Average Cost Method

A method of inventory valuation that calculates the cost of goods sold and ending inventory based on the average cost of all items available for sale during a period.