If Country a Runs a Trade Deficit Against Country B

question 77

True/False

If Country A runs a trade deficit against Country B one year, then it may continue to run a deficit for all time.

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Definitions:

Revenue Account

An account that records the income generated from the sale of goods and services.

Debit Balance

An account balance where total debits exceed total credits.

Debit

An accounting entry that increases an asset or expense account, or decreases a liability or equity account, used in double-entry bookkeeping.

Credit

An accounting entry that either increases a liability or equity account, or decreases an asset or expense account.