The Three Balances That Determine the Current Account Balance Are

question 140

Multiple Choice

The three balances that determine the current account balance are:

• A) the external balance, the internal balance, and the global balance.
• B) the trade balance, the balance on income from factor services, and the balance on net unilateral transfers.
• C) the credit balance, the debit balance, and the balance of external indebtedness.
• D) the balance on investment, the balance on asset transfers, and the balance on forgiveness of debt.

---

Definitions:

Cost Of Goods Manufactured

The total production cost (including materials, labor, and overhead) of goods that were completed during a specific accounting period.

Direct Materials

Raw materials that are directly incorporated into a finished product and can be directly attributed to the product.

Manufacturing Overhead

All indirect costs associated with the production process of a company, including utilities, depreciation, and salaries of non-direct labor.

Work In Process

Inventory that is currently being manufactured but is not yet complete.