Suppose the Balance on the fiNancial Account Is +$200 Billion

question 74

Multiple Choice

Suppose the balance on the financial account is +$200 billion and the balance on the capital account is +$2 billion. The size of the current account is

• A) +$200 billion.
• B) −$202 billion.
• C) −$198 billion.
• D) +$2 billion.

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Definitions:

IFRS

stands for International Financial Reporting Standards, which are a set of accounting standards developed by the IASB that aim to bring consistency to accounting language, practices, and statements globally.

Consolidated Statement

Financial statements that reflect the combined operations, assets, and liabilities of a parent company and its subsidiaries.

Comprehensive Income

The total change in equity for a reporting period other than transactions from owners.

Equity Method

A method of accounting where an investor recognizes its proportionate share of the associate or joint venture's income, losses, and dividends within its own financial statements.