Which of the Following Arises When a Country Is Importing

question 68

Multiple Choice

Which of the following arises when a country is importing more goods and services than it is exporting?

• A) Current account surplus
• B) Trade deficit
• C) Trade surplus
• D) Trade balance

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Definitions:

Permanent Difference

A difference between the book income and taxable income that will not reverse over time.

Product Warranty Costs

Expenses incurred by a company to repair, replace, or reimburse for products that fail to meet specified warranties.

Municipal Bonds

Debt securities issued by states, municipalities, or counties to finance capital expenditures.

Percentage Depletion

A tax deduction method that allows an owner or operator of a mine or other natural resources to deduct a percentage of the resource's value as it is depleted.