Current account example sentences

While the former records both capital and revenue receipts and payments relating to any accounting year, the latter records only revenue items relating to the current accounting year.Table 1 (given at the end of chapter) shows that there has been a trade deficit throughout the period and a surplus in invisibles except for 1990-9 The current account deficit (which has been observed for 24 years from 1977-78) had started shrinking and turned into surplus from 2001-0 The surplus continued till 2003-04, but turned into a deficit in 2004-0 The large trade deficit could not be bridged by the invisibles surplus.Provision is made for a known liability or expense pertaining to current accounting period, the amount of which is not certain.The current account balance is the sum of the balance of merchandise trade, services and net transfers received from the rest of the world.Thus, any current account deficit is of necessity financed by a net capital inflow.While the former records both capital and revenue receipts and payments relating to any accounting year, the latter records only revenue items relating to the current accounting year.There are two main accounts in the BoP – the current account and the capital account.In April-September 2005-06, the current account deficit of US$13 billion was financed by a capital inflow of US$1 5 billion, the extra capital inflow of US$ 5 billion being added to our stock of foreign exchange.The essence of international payments is that just like an individual who spends more than her income must finance the difference by selling assets or by borrowing, a country that has a deficit in its current account (spending more abroad than it receives from sales to the rest of the world) must finance it by selling assets or by borrowing abroad.A current account deficit is financed by net capital flows from the rest of the world, thus by a capital account surplus.Bank, do not allow any interest on the balance in current account but charge a small amount, called incidental charges, for the services rendered.A businessman generally opens a current account with a bank.Adding trade in services and net transfers to the trade balance, we get the current account balance.There are certain expenses/losses which are related to the current accounting period but amount of which is not known with certainty because they are not yet incurred.Cheques drawn on savings or current accounts, however, can be refused by anyone as a mode of payment.