Which of the Following Statements About the Importance of Trade

question 41

Multiple Choice

Which of the following statements about the importance of trade to the U.S.economy is false?

• A) Since 1950, both exports and imports have steadily increased as a fraction of U.S. gross domestic product.
• B) Overall, about 20 percent of U.S. manufacturing jobs depend directly or indirectly on exports.
• C) The United States is the largest exporter in the world.
• D) The U.S. economy is highly dependent on international trade for growth in its gross domestic product.

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Definitions:

Accounting Cycle

The comprehensive process of recording and processing all financial transactions of a company, from when the transaction occurs, to its representation on the financial statements.

Adjusted Trial Balance

A version of the trial balance that reflects account balances after adjustments are made for accruals, deferrals, and errors.

Unadjusted Trial Balance

A preliminary list of all accounts in the general ledger with their balances to check the equality of debits and credits before adjustments.

Contra Asset

An account on a company's balance sheet that reduces the value of a related asset account.