Question

What are the principles and concepts that countries need to follow while compiling their BoP data?

a.

Single-entry bookkeeping system, no distinction between residents and non-residents, and limited scope of economic transactions

b.

Adoption of the double-entry bookkeeping system, distinction between entities to be treated as residents and non-residents, scope of economic transactions to be included in BoP statistics, and valuation of transactions

c.

Triple-entry bookkeeping system, no distinction between residents and non-residents, and unlimited scope of economic transactions

d.

Limited scope of economic transactions and no need for valuation of transactions

Posted under IC 89 Management Accounting

Answer: (b).Adoption of the double-entry bookkeeping system, distinction between entities to be treated as residents and non-residents, scope of economic transactions to be included in BoP statistics, and valuation of transactions Explanation:Certain principles and concepts need to be followed by countries while compiling their BoP data, and these include the adoption of the double-entry bookkeeping system, distinction between entities to be treated as residents and non-residents, scope of economic transactions to be included in BoP statistics, valuation of such transactions, and the time when these transactions are to be recorded.

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Q. What are the principles and concepts that countries need to follow while compiling their BoP data?
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