A Favorable Balance of Trade Occurs When

question 120

Multiple Choice

A favorable balance of trade occurs when:

• A) exports equal imports.
• B) the balance of payments balances.
• C) the current and capital account in the BOP are equal.
• D) the value of the exports of goods exceeds the value of the imports of goods.
• E) the value of the exports of goods is less than the value of the imports of goods .

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Definitions:

Accounts Receivable Balance

The sum total of money that customers are in debt to a company for its goods or services that have been utilized but not paid for.

Firm's Cash Cycle

The length of time it takes a company to convert its investments in inventory and other resources into cash flows from sales.

Cash Budgeting

The process of forecasting future financial positions based on anticipated cash receipts and disbursements.