The Balance of Goods and Services Is

question 215

Multiple Choice

The balance of goods and services is

• A)the same as the merchandise trade balance, since services cannot be traded
• B)equivalent to the trade balance
• C)the value of all goods and services exported minus the value of all goods and services imported
• D)the value of all tangible products exported minus the value of all tangible products imported
• E)the value of all tangible products exported minus the value of all tangible products imported, and transactions to finance the difference

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Definitions:

Deferred Payment

A payment arrangement that allows the payer to make the payment at a future date, often after receiving the goods or services.

Capitalized

The process of recording an expenditure as an asset, rather than an expense, thus spreading the cost over its useful life.

Installation Costs

Expenses associated with setting up or installing equipment or machinery for its intended use.

Fair Value

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.