If the Current Account Balance Shows a Surplus,and the Capital

question 73

Multiple Choice

If the current account balance shows a surplus,and the capital account also shows a surplus,then the official reserve transactions balance

• A) must be positive.
• B) must be negative.
• C) must be zero.
• D) can either be positive, negative, or zero.

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Definitions:

Financing Activities

Transactions and events that affect the long-term liabilities and equity of a company, including issuing debt and equity.

Note Payable

A written promise to pay a specific sum of money to a bearer or a specified person at a future date or on demand.

Cash Dividends

Profits paid out to shareholders by a corporation based on the number of shares they own.

Statement of Cash Flows

A report detailing how modifications in balance sheet accounts and earnings influence cash and cash equivalents.