December 2015
Intermediate to advanced
313 pages
16h 2m
English
Content preview from International Business, 2nd Edition by Pearson
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International Balance of Payments 159
BOP Accounting: Double-entry Book-keeping
The balance of payments employs an accounting
technique called double-entry book-keeping. Double-
entry book-keeping is the age-old method of account-
ing in which every transaction produces a debit and a
credit of the same amount simultaneously. It has to. A
debit is created whenever an asset is increased, a lia-
bility is decreased, or an expense is increased. Similarly, a credit is created whenever an asset is decreased,
a liability is increased or an expense is decreased.
An example will clarify this process. An Indian retail store imports USD 52 million worth ...
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