Mike,a USCitizen,buys $1,000 Worth of Cheese from France

question 72

Multiple Choice

Mike,a U.S.citizen,buys $1,000 worth of cheese from France.His action alone

• A)increases U.S.imports by $1,000 and increases U.S.net exports by $1,000.
• B)increases U.S.imports by $1,000 and decreases U.S.net exports by $1,000.
• C)increases U.S.exports by $1,000 and increases U.S.net exports by $1,000.
• D)increases U.S.exports by $1,000 and decreases U.S.net exports by $1,000.

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Definitions:

Balance Sheet Credit

Refers to any credit entry recorded in the balance sheet, indicating an increase in liabilities or equity or a decrease in assets.

Adjusted Trial Balance

A trial balance prepared after adjusting entries are made and posted, used to verify the equality of debits and credits.

Financial Statements

These are formal records that detail a company's financial activities and condition, typically including the balance sheet, income statement, and cash flow statement.

Adjustments

Modifications made to financial records or statements to correct errors, account for accruals, or align with accounting principles.