Which of the Following Is Correct with Regard to the Balance

question 69

Multiple Choice

Which of the following is correct with regard to the balance of trade and the balance of payments?

• A) If a country has a favourable balance of trade,it will also have a favourable balance of payments.
• B) The balance of payments is computed by dividing the value of a country's currency by the number of currency transactions that took place in the previous year.
• C) A country that imports more than it exports has a favourable balance of trade.
• D) Countries used to strive to have a favourable balance of trade,but governments no longer worry about that issue because of globalization.
• E) Canada has had a favourable balance of trade for most of the last 30 years.

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Definitions:

Perform Audits

The process of examining an organization's financial records to ensure accuracy and compliance with accounting standards and laws.

Financial Statements

Summaries that present a snapshot of a corporation's financial health, encompassing the balance sheet, income statement, and cash flow statement.

Statement of Stockholders' Equity

This financial statement details the changes in the equity section of a company over a period, including transactions like stock issuance and earnings retention, presenting a different perspective from its initial portrayal.

Dividend Payments

Distributions of earnings allocated by a company to its shareholders, often in the form of cash or stock.