Which of the Following Is CORRECT

question 440

Multiple Choice

Which of the following is CORRECT?

• A) Net exports equals the government sector balance plus the private sector balance.
• B) The government sector balance equals net exports plus the private sector balance.
• C) The private sector balance equals net exports plus the government sector balance.
• D) Net exports equals the current account plus the capital account plus the official settlements account.

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Definitions:

Goodwill

An intangible asset that arises when a business is purchased for more than the fair market value of its net assets, reflecting the value of the business’s reputation, brand, and other unquantifiable assets.

Acquiree

A company that has been bought or acquired by another company.

Business Combination

The process of bringing together separate companies or entities into one larger organization through mergers, acquisitions, or consolidations.

Tax Effects

The impact of tax laws on the financial statements of an entity, including the calculation of tax liabilities and assets.