A Capital and Financial Account Surplus Necessarily Implies

question 84

Multiple Choice

A capital and financial account surplus necessarily implies

• A)a balance of payments surplus.
• B)a current account surplus.
• C)a current account deficit.
• D)an increase in the nation's official reserve assets.

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Definitions:

Impairment Losses

Monetary losses identified when the book value of an asset is higher than its salvageable value.

Fair Value

An estimate of the price at which an asset or liability could be traded in a fair transaction between willing parties.

Accelerated Depreciation

A depreciation method that allows a larger depreciation deduction in the early years of an asset's life and smaller deductions in the later years.