What Do We Call a System of Accounts That Records

question 33

Multiple Choice

What do we call a system of accounts that records a country's international financial transactions?

• A)Tariffs
• B)Balance of payments
• C)Import / export accounts
• D)Currency fluctuations

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Definitions:

Accrual Basis

An accounting method that records revenues and expenses when they are earned or incurred, regardless of when cash is exchanged.

Accounting

An information system that provides reports to stakeholders about the economic activities and condition of a business.

Adjusting Process

The method of updating account balances at the end of an accounting period to reflect accurate financial positions.

Financial Statements

Financial statements are formal records of the financial activities and condition of a business, person, or other entity, providing an overview of a financial situation over a specified period.