The Balance-Of-Payments Account Is Divided into the Following Three Major

question 69

Multiple Choice

The balance-of-payments account is divided into the following three major subaccounts:

• A) trade, capital, and debt.
• B) cash flow, assets, and reserves.
• C) services, cash flow, and debt.
• D) current, capital, and reserves.

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Definitions:

Purchases Budget

A financial plan that estimates the amount of goods or inventory a business needs to buy over a certain period to meet its sales goals.

Production Budget

An estimation of the total output a company needs to meet its sales goals and inventory policies, expressed in units or monetary terms.

Merchandising Companies

Companies that purchase goods in finished form for resale to consumers, generating revenue primarily from the sale of merchandise.

Direct Materials Budget

A financial plan that estimates the quantity and cost of direct materials needed to meet production requirements.