Double entry accounting, with respect to calculation of balance of payments calculation, means:
A)the balance of payments statement must always balance because total debits must equal total credits.
B)the balance of payments statement will always favor the larger nation.
C)the balance of payments statement will always favor the smaller nation.
D)the balance of payments statement will never be in complete balance.
E)the balance of payments statement will rarely be accurate.

Question

Quizplus · Accepted Answer

Double entry accounting in the context of balance of payments means that every transaction is recorded twice, once as a credit and once as a debit, ensuring that the statement balances because the sum of credits must equal the sum of debits.

Double Entry Accounting, with Respect to Calculation of Balance of Payments