Which of the Following Statements Is Correct

question 38

Multiple Choice

Which of the following statements is correct?

• A) A flexible budget is calculated for actual activity level only.
• B) A static budget can be calculated for a number of activity levels.
• C) A static budget is prepared for budgeted activity level only.
• D) Both A and C

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Definitions:

Trade Deficits

An economic measure where a country's imports exceed its exports over a certain period, indicating an outflow of domestic currency to foreign markets.

Capital and Financial Account

Components of a country's balance of payments, recording the transactions of assets and liabilities, such as direct investments, portfolio investments, and other investments across borders.

Net Exports

The value of a country's total exports minus the value of its total imports, indicating the balance of trade.