The Level of Saving in Japan Has Historically Been High

question 87

Multiple Choice

The level of saving in Japan has historically been high relative to the level of domestic investment.Based on this information,we would expect that

• A)Japan's net foreign investment has been relatively low.
• B)Japan's net exports have been relatively high.
• C)Japan's capital inflows are positive.
• D)Japan's private saving is greater than its public saving.

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Definitions:

Average cost method

An inventory costing method where the cost of goods sold and ending inventory is calculated based on the average cost of all units available for sale during the period.

Periodic system

An inventory accounting system in which updates to inventory levels and cost of goods sold are made at the end of an accounting period rather than after each sale.

Ending inventory

The aggregate worth of products ready for sale at the close of an accounting period, determined by summing up acquisitions to the initial inventory and deducting the cost of goods sold.

Cost flow assumption

An accounting method that determines how costs are allocated to inventory and cost of goods sold, such as FIFO, LIFO, or weighted average.