Which of the Following Statements Is TRUE

question 99

Multiple Choice

Which of the following statements is TRUE?

• A)A country runs a capital account deficit if it imports more than it exports.
• B)If the current account is in surplus,the capital account must be in deficit.
• C)The overall sum of all the entries in the balance of payments must be positive.
• D)A country runs a current account surplus if it sells more of its assets abroad than it buys abroad.

---

Definitions:

Budgeting

A process of creating a plan to spend your money, outlining projected income and expenses over a period.

Spending Variances

The difference between the actual amount spent and the budgeted amount for a particular accounting category.

Favorable

A term used in finance and accounting indicating that actual performance is better than the expected or budgeted performance.

Unfavorable

A term used in budgeting and accounting to describe a financial condition or variance that is worse than expected or budgeted.