Which of the Following Is True

question 45

Multiple Choice

Which of the following is true?

• A)​U.S.imports are considered a credit item in the balance of payment, because the dollars sold to buy the necessary foreign currency add to foreign claims against U.S.buyers.
• B)​When the U.S.runs a trade deficit in goods and services with the rest of the world, the rest of the world must be running a trade surplus in goods and services with the U.S.
• C)​When the U.S.runs a trade deficit in goods, it must run a trade surplus in services.
• D)​None of the above is true.

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Definitions:

Unprofitable Segment

A division or part of a business that consistently operates at a loss, detracting from the overall profitability of the company.

Elimination

The process of removing a component or aspect, often used in the context of accounting to adjust consolidated financial statements.

Related Product Lines

Products that are linked or associated in terms of their usage, customer base, or production requirements, often marketed together.

Special Order

A one-time or nonregular order that can require special pricing or production adjustments in manufacturing or service processes.