If the Current Account Is in Surplus and the Capital

question 124

Multiple Choice

If the current account is in surplus and the capital and financial account is also in surplus, then the official settlements account balance is

• A)negative.
• B)positive.
• C)probably close to zero, but could be either negative or positive.
• D)zero.
• E)equal to the sum of the current account and the capital account.

---

Definitions:

Work In Process Inventory

Goods that are in the process of being manufactured but are not yet complete.

Fixed Overhead Costs

Regular, unchanged costs incurred by a business, regardless of its level of production or activity, such as rent and salaries.

Control Perspective

An approach focusing on the monitoring and adjusting of processes and strategies to achieve desired outcomes or objectives.

Revenue Variance

The difference between how much the revenue should have been, given the actual level of activity, and the actual revenue for the period. A favorable (unfavorable) revenue variance occurs because the revenue is higher (lower) than expected, given the actual level of activity for the period.