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If money is being paid for a service it is recorded like an import (a debit), and if money is received it is recorded like an export (credit).
Income: includes income derived from ownership of assets, such as dividends on holdings of stock and interest on securities.
Unilateral transfers: are transactions with nothing received in return. These include workers' remittances, donations, aids and grants, official assistance and pensions.
Here are the variables that go into the calculation of the current account balance (CAB):
X = Exports of goods and services
M = Imports of goods and services
NY = Net income abroad
NCT = Net current transfers
The formula is CAB=X-M+NY+NCT...
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