The Current Account Balance Is Equal to

question 39

Multiple Choice

The current account balance is equal to

• A)Trade balance + services balance - capital account balance.
• B)Trade balance + services balance + capital account balance.
• C)Trade balance + unilateral transfers.
• D)Total payments made by residents of the United States to foreigners plus total payments made by foreigners to residents of the United States.

---

Definitions:

Adjusted Trial Balance

A compilation of all accounts along with their balances, post-adjustment entries, employed during the creation of financial reports.

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary accounts to permanent accounts and prepare the company's books for the next period.

End-of-period Spreadsheet

A financial document used to summarize account balances and adjustments at the conclusion of an accounting period before preparing financial statements.

Closing Entries

Entries recorded at the conclusion of a fiscal period to move balances from temporary accounts to permanent ones, thus readying the accounts for the upcoming period.