Which accounting term describes when a company's exports exceed its imports?

Which accounting term describes when a company's exports exceed its imports?

• A. Trade Deficit
• B. Trade Surplus
• C. Capital Gain
• D. Market Share

Answer: (B)

The term that describes when a company's exports exceed its imports is known as a trade surplus. A trade surplus occurs when the value of goods and services that a country sells to other countries is greater than the value of the goods and services it buys from them. This situation is generally seen as positive for a nation's economy, as it indicates that a country is earning more from its international trade than it is spending. In contrast, a trade deficit occurs when imports exceed exports, suggesting that a country is spending more on foreign trade than it is earning. Capital gain is related to the increase in value of assets, typically in investments, and market share refers to a company's percentage of total sales in a market. Understanding these terms is essential for interpreting economic conditions related to international trade and its impact on a country's economy.

The term that describes when a company's exports exceed its imports is known as a trade surplus. A trade surplus occurs when the value of goods and services that a country sells to other countries is greater than the value of the goods and services it buys from them. This situation is generally seen as positive for a nation's economy, as it indicates that a country is earning more from its international trade than it is spending.

In contrast, a trade deficit occurs when imports exceed exports, suggesting that a country is spending more on foreign trade than it is earning. Capital gain is related to the increase in value of assets, typically in investments, and market share refers to a company's percentage of total sales in a market. Understanding these terms is essential for interpreting economic conditions related to international trade and its impact on a country's economy.