Glossary

Record of transactions between U.S. residents and foreign residents during a given time period. Includes transactions in goods, services, income, assets, and liabilities. It is broken down into the current accounts (international), capital accounts (international), and financial accounts (international).

Current receipts from the rest of the world less current payments to the rest of the world, formerly called "net foreign investment." Current receipts equal exports of goods and services plus income receipts from the rest of the world; current payments are the sum of imports of goods and services, income payments to the rest of the world, and current taxes and transfer payments to the rest of the world (net).

Record of the difference between exports of goods and imports of goods.

Record of the difference between exports of goods and services and imports of goods and services. In the broad sense, this balance is conceptually equal to net exports of goods and services, which is a component of gross domestic product (GDP).

Net payments by businesses to persons, government, and the rest of the world for which no current services are performed.

Consists of payments to the Federal government in the form of premiums for deposit insurance, fees for regulatory and inspection activities, and fines; payments to state and local governments in the form of fines, tobacco settlements, and donations; and net insurance settlements paid to governments as policyholders.

Consists of net insurance settlements and income payments by businesses to persons for which no current services are performed.

Net insurance settlements paid to the rest of the world as policyholders. Excludes taxes paid by domestic corporations to foreign governments.

Transactions covering a wide range of private services sold to or purchased from foreigners, such as advertising, telecommunications, computer and data processing services, and accounting and legal services.

Income accruing to employees as remuneration for their work for domestic production. It is the sum of wage and salary accruals and of supplements to wages and salaries. It includes compensation paid to the rest of the world and excludes compensation received from the rest of the world.

Wage and salary disbursements and supplements to wages and salaries received by U.S. residents, including wages and salaries received from the rest of the world.

The charge for the using up of private and government fixed capital located in the United States. It is the decline in the value of the stock of fixed assets due to wear and tear, obsolescence, accidental damage, and aging. For general government and for nonprofit institutions that primarily serve individuals, CFC serves as a measure of the value of the current services of the fixed assets owned and used by these entities.

This measure–profits from current production–is the income that arises from current production, measured before income taxes, of organizations treated as corporations in the national income and product accounts (NIPAS). With several differences, this income is measured as receipts less expenses as defined in Federal tax law. Among these differences are: Receipts exclude capital gains and dividends received; expenses exclude bad debt, depletion, and capital losses; inventory withdrawals are valued at current cost; and depreciation is on a consistent accounting basis and valued at current replacement cost.

Transactions in services between the residents of one country and the residents of another country. From the U.S. viewpoint, it consists of exports and imports of services between U.S. residents and foreign residents. It includes both trade within multinational companies (intra-firm trade in services) and trade between unaffiliated parties. It is one of two channels of delivery of services in international markets; the other is sales of services through foreign affiliates of multinational companies.

The sum of imports of goods and services, income payments to the rest of the world, and current taxes and transfer payments to the rest of the world.

The sum of exports of goods and services and income receipts from the rest of the world.

The current operating revenue and subsidies received by government enterprises from other levels of government less the current expenses of government enterprises.

Payments consisting of business current transfer payments to the rest of the world (net), plus nonresident taxes paid by domestic corporations to foreign governments.

Receipts received by U.S. residents of dividends from foreign corporations plus earnings distributed by unincorporated foreign affiliates to their U.S. parents.

Tangible products that can be stored or inventoried and that have an average life of at least three years.

Contributions consisting of employer payments (including payments-in-kind) to private pension and profit-sharing plans, publicly administered government employee retirement plans, private group health and life insurance plans, privately administered workers' compensation plans, and supplemental unemployment benefit plans, formerly called other labor income.

Investment in equipment and software consists of capital account purchases of new machinery, equipment, furniture, vehicles, and computer software; dealers' margins on sales of used equipment; and net purchases of used equipment from government agencies, persons, and the rest of the world. Own-account production of computer software is also included.

Goods and services sold by U.S. residents to foreign residents.

Demand of final uses.