A Country's International Transactions Can Be Grouped into the Following

question 4

Multiple Choice

A country's international transactions can be grouped into the following three main types:

• A)current account, medium term account, and long term account
• B)current account, long term account, and capital account
• C)current account, capital account, and reserve account
• D)capital account, reserve account, trade account

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Definitions:

LIFO

"Last In, First Out," an inventory valuation method where the most recently produced or purchased items are the first to be expensed.

Absorption Costing

A costing method where all manufacturing costs including both direct costs like labor and materials and indirect costs like overhead are allocated to the product.

Variable Costing

An accounting method that only considers variable costs in the calculation of product or service costs, excluding fixed costs.

Net Operating Income

The profit a company makes from its regular business operations, excluding non-operating income and expenses.