An Economy with a Current Account Surplus Must Also Have

question 208

Multiple Choice

An economy with a current account surplus must also have

• A) a trade deficit.
• B) a budget surplus.
• C) a budget deficit.
• D) positive net capital inflows.
• E) negative net capital inflows.

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Definitions:

Statement of Retained Earnings

This report outlines the fluctuation in a company’s retained earnings over a particular accounting timeframe, incorporating elements like net profits and dividend distributions.

Cash Flow Statement

A financial document summarizing the total cash received by a company from its operational activities and external investments, alongside all expenditures on operations and investments within a specific timeframe.

Equipment Account

An account on a company's balance sheet that reports the value of the company's equipment used in operations, less any accumulated depreciation.

Posting

The process of recording financial transactions in the ledger of a company as part of the accounting cycle.