If a Country Has a Trade Surplus of $40 Billion

question 280

Multiple Choice

If a country has a trade surplus of $40 billion, which of the following can be true?

• A) The country's exports are $160 billion, and its imports are $120 billion.
• B) The country's exports are $110 billion, and its imports are $150 billion.
• C) The country's exports are $120 billion, and its imports are $140 billion.
• D) The country's exports are $140 billion, and its imports are $40 billion.

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Definitions:

Accounting Principle

Fundamental guidelines or rules that form the basis for financial accounting and reporting practices, aimed at ensuring consistency and comparability.

Comparative Financial Statements

Financial reports that show the financial position, performance, and cash flows of a company across different periods side by side for comparison.

Accounting Changes

Alterations or updates made to accounting methods, estimates, or reporting entity, which can impact the financial statements of a business.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, including the balance sheet and income statement.