If Devaluation Does Not Improve the BOT,but Only the BOP,this

question 11

Multiple Choice

If devaluation does not improve the BOT,but only the BOP,this implies that

• A)the capital account is in deficit.
• B)the current account is in surplus.
• C)the improvement comes in the capital account.
• D)Both B and C.

---

Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenues.

Infrequent Gain/Loss

Earnings or losses that arise from events that are not expected to recur regularly, distinguished from ordinary operational results.

Continuing Operations

The segments of a business expected to continue operating into the foreseeable future, excluding any discontinued operations.

Extraordinary Item

An unusual and infrequent gain or loss that is reported separately in the financial statements.