If the Balance on the Current Account Is $346 Billion

question 162

Multiple Choice

If the balance on the current account is $346 billion and the balance on the financial account is -$204 billion,what is the balance on the capital account,assuming no statistical discrepancy?

• A)$550 billion
• B)$142 billion
• C)$0
• D)-$142 billion

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Definitions:

Variable Costs

Costs that change in proportion to the level of goods or services produced by a business.

Total Manufacturing Costs

The aggregate of all costs involved in the process of producing a product, including direct materials, direct labor, and manufacturing overhead.

Business Unit Reporting

The process of preparing and presenting financial and operational reports specific to distinct divisions or segments of a company.

Absorption-Costing Format

An accounting method that includes all manufacturing costs (direct materials, direct labor, and both variable and fixed overhead) in the cost of a product.