In the Balance of Payments Statement, a Current Account Surplus

question 214

Multiple Choice

In the balance of payments statement, a current account surplus will be matched by a

• A) capital and financial accounts deficit.
• B) capital and financial accounts surplus.
• C) trade deficit.
• D) trade surplus.

Distinguish between different types of unions and their characteristics.

Understand the preparation of the statement of cash flows using the indirect method.

Understand the preparation of the statement of cash flows using the direct method.

Identify cash flows from operating activities.

---

Definitions:

Single-Step Income Statement

An income statement format that lists all revenues and then deducts all expenses to find the net income with only one subtraction.

Multiple-Step Income Statement

A detailed income statement that separates operational revenue and expenses from non-operational ones, presenting a clear view of a company’s operational efficiency.

Income Statements

A financial statement that shows a company’s revenues, expenses, and profits or losses over a specific period.

Wholesalers

Businesses that buy goods in bulk from manufacturers or distributors and then sell them in smaller quantities to retailers or other businesses.