The Merchandise Trade Balance Measures

question 128

Multiple Choice

The merchandise trade balance measures:

• A)the value of goods and services exported.
• B)the value of all goods and services exported minus the value of all goods and services imported.
• C)the value of all goods and services exported minus the value of all goods and services imported,and the transactions to finance the difference.
• D)the value of all tangible products exported minus the value of all tangible products imported.
• E)the value of all tangible products exported minus the value of all tangible products imported,and the transactions to finance the difference.

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Definitions:

Comprehensive Income

A measure of all changes in equity of a company that result from recognized transactions and other economic events of the period other than those resulting from investments by and distributions to owners.

Retained Earnings

Profits that a company keeps or retains after paying dividends to shareholders, which are often reinvested in the business or used to pay down debt.

Accumulated Other Comprehensive Income

The cumulative effects of other comprehensive income items reported separately in the Stockholders’ Equity section of the balance sheet.

Long-Term Investments

Assets intended to be held for more than one fiscal year, including bonds, stocks, or real estate, aiming for future returns.