________ Indicates Whether a Country Is a Net Borrower from or Lender

question 33

Multiple Choice

________ indicates whether a country is a net borrower from or lender to the rest of the world.

• A)The basic balance
• B)The liquidity balance
• C)The capital account
• D)The current account

---

Definitions:

Supplies Expense

An expense account that records the cost of consumable items used during an accounting period, such as office supplies.

Purchases

Transactions where goods or services are exchanged for money, typically recorded in the accounting period in which they occur.

Income Summary Account

An income summary account is an account used in the closing process that temporarily holds the balances of all income and expense accounts before transferring the net result to capital or retained earnings.

Net Loss

The amount by which company expenses exceed its revenues over a specified period, indicating a loss in financial performance.