A comprehensive statement of Income and expenditure on international accounts for one financial year is called

Step 1: Analyze the question The question asks for the term describing a comprehensive record of a country's income (receipts) and expenditure (payments) on international transactions over one financial year.

Step 2: Explain the concept The balance of payments (BOP) is a systematic record of all economic transactions between a country and the rest of the world over a period, usually one year. It has these main parts:

• Current account: visible trade (goods), invisible trade (services, income, transfers)
• Capital account / financial account: loans, investments, and other capital flows
• Official reserves / balancing item

Step 3: Check each option

• A. Balance of payments: Covers all international receipts and payments, both visible and invisible, plus capital flows. This matches the question.
• B. Balance of trade: Covers only the difference between the value of visible exports and visible imports (goods). It is not comprehensive.
• C. Budget: A government's plan of revenue and expenditure within the country, not international accounts.
• D. Index of trade: Not a standard term for this. It would refer to a measure of trade changes.
• E. Terms of trade: The ratio of export prices to import prices. It shows the relative value of exports, not a statement of accounts.

Step 4: Answer The key word is "comprehensive". Only the balance of payments covers all international income and expenditure, not just goods.

Tip: Remember "payments = everything, trade = goods only". If a question mentions all international transactions, including services and capital, choose balance of payments. If it mentions only visible exports and imports, choose balance of trade.