When the Value of Exports Equals the Value of Imports

question 65

Multiple Choice

When the value of exports equals the value of imports then

• A)the value of capital exports equals the value of capital imports.
• B)the balance of trade is in balance.
• C)the accounting identity does not hold.
• D)the value of all debit transactions equals the value of all credit transactions.

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Definitions:

Income Statement

A financial report summarizing the revenues, expenses, and profits over a specified period, usually a fiscal quarter or year.

Disposal of a Segment

The process of eliminating a division, department, or segment of a business through sale, closure, or bankruptcy, impacting financial statements.

Accounting Principle

Guidelines and rules that govern the accounting process, ensuring accuracy and consistency in financial reporting.

Continuing Operations

The segments of a business that are expected to continue to operate into the foreseeable future, distinguishing from any discontinued operations.