The Main Reason for Our Balance of Payments Deficits Has

question 12

Multiple Choice

The main reason for our balance of payments deficits has been

• A)military spending abroad.
• B)spending by U.S.tourists abroad.
• C)our negative balance of trade.
• D)None of the choices are correct.

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Definitions:

Gross Profit

The difference between the revenue earned from sales and the cost of goods sold, not accounting for other expenses.

Inventory Shrinkage

Loss of products between purchase from a supplier and sale, often due to theft, damage, or errors.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate periods.

Periodic Inventory System

A method of inventory valuation for financial reporting purposes where a physical count of inventory is performed at specific intervals, and cost of goods sold is calculated at the end of the accounting period.