If the Current Account Shows a Deficit, the Capital Account

question 89

True/False

If the current account shows a deficit, the capital account must show a surplus of the same amount.

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Definitions:

Cost Behavior

The study of how specific costs change in relation to changes in the levels of activity within a company, typically categorized into fixed, variable, and mixed costs.

Sales Variance

The difference between actual sales and budgeted or forecasted sales.

Sales Price Variance

The difference between the actual sales price of a product and its expected (or standard) sales price.

Sales Volume Variance

The difference between the actual quantity sold and the budgeted quantity sold, multiplied by the standard selling price per unit.