Which of the Following Ensures That Balance-Of-Payments Records Are Always

question 97

Multiple Choice

Which of the following ensures that balance-of-payments records are always in balance?

• A) The balance sheet record
• B) The ledger entry model
• C) A double-entry bookkeeping system
• D) A deficit-surplus record system
• E) An import/export bookkeeping system

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Definitions:

Accrued Interest

Interest that has accumulated over a period but has not yet been paid or received.

Note Payable

A financial obligation represented by a written promise to pay a specified amount of money, plus interest, by a certain date or on demand.

Interest Expense

The cost incurred by an entity for borrowed funds, considered a non-operating expense on the income statement.

Commercial Bank

A financial institution that offers a broad range of deposit accounts, including business loans, retail banking, and other financial services.