If Australia Exports More Than It Imports, Then

question 140

Multiple Choice

If Australia exports more than it imports, then:

• A)Australia's balance of payments will be in deficit.
• B)Australia's balance of trade on goods and services will be positive.
• C)Australia will have a current account surplus.
• D)Australia will have a financial account deficit.

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Definitions:

Cash Payments Journal

An accounting journal used to record all cash payments made by a company, including expenses and purchases.

Prepaid Insurance

Payments made for insurance coverage that has not yet been incurred, recorded as an asset on the balance sheet.

Supplies Account

An account used in accounting to track the amount spent on supplies that are used in the business operations.

Accounting System

A systematic process of collecting, recording, classifying, summarizing, and interpreting financial transactions of a business.