In the Long Run, Imports Are Paid for by

question 239

Multiple Choice

In the long run, imports are paid for by

• A) investment.
• B) exports.
• C) dollars.
• D) gold or other universally accepted monies.

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Definitions:

Guaranteed Residual Value

An assurance that an asset will have a specified value at the end of its lease term.

Capital Lease

A lease agreement that is classified as a purchase of assets for accounting purposes, where the lessee assumes some of the risks and benefits of ownership.

Leased Equipment

Assets obtained for use by leasing rather than purchasing, allowing companies to use equipment without owning it.

Depreciation Expense

The allocated amount of the cost of an asset expensed each period over its useful life, reflecting wear and tear or obsolescence.