The Balance of Goods and Services Is

question 215

Multiple Choice

The balance of goods and services is

• A)the same as the merchandise trade balance, since services cannot be traded
• B)equivalent to the trade balance
• C)the value of all goods and services exported minus the value of all goods and services imported
• D)the value of all tangible products exported minus the value of all tangible products imported
• E)the value of all tangible products exported minus the value of all tangible products imported, and transactions to finance the difference

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Definitions:

Zero-based Budgeting

A budgeting method that starts from a "zero base" every period, requiring all expenses to be justified for each new period, as opposed to being carried forward.

Top-Down Budgeting

A budgeting approach where the budget is created by top-level management and then distributed to lower levels for implementation.

Bottom-Up Budgeting

A budgeting process where the budget is prepared with the input and estimates coming from lower-level staff, before being aggregated and approved at higher levels.

Operating Budgets

A financial plan that estimates the expected income and expenses for a specific period in the future, often used to guide business activities.