If the Country's Balance of Payments on the Current Account

question 434

Multiple Choice

If the country's balance of payments on the current account is positive:

• A)the balance of payments on the financial account is also positive.
• B)the balance of payments on the financial account is negative, so that the sum of the accounts equals zero.
• C)a country's flow of funds into the country is greater than the flow of funds out of the country.
• D)the country's imports are greater than its exports.

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Definitions:

Revenue Journal

A revenue journal is a ledger used to record a company’s sales transactions, typically detailing the sale of goods or services on credit.

Cash Revenues

Income received by a company in the form of cash from its operational activities.

Revenues on Account

Earnings from sales or services that have been completed but not yet paid for by customers.

Unearned Revenues

Money received by a company for goods or services that have not yet been provided, classified as a liability on the balance sheet until the services or goods are delivered.