A Net Importer of Assets Must Have a

question 196

Multiple Choice

A net importer of assets must have a

• A)current account deficit
• B)capital account deficit
• C)current account surplus
• D)capital account surplus
• E)balance of deficit trade

---

Definitions:

Adjusting Entries

Bookkeeping entries recorded at the conclusion of an accounting cycle to apportion earnings and outlays to the appropriate period.

Interim Periods

Monthly or quarterly accounting time periods.

Annually

Occurring once every year.

Income Summary Account

An account used in the closing process to summarize the period's revenues and expenses before transferring the net income or loss to retained earnings.