Final answer:
Expenses, losses, revenues, and gains affect stockholders' equity through net income or net loss. Dividends and interest impact the current account balance as income payments, representing financial capital trade in international markets.
Step-by-step explanation:
Expenses, losses, revenues, and gains are not stockholders' equity accounts, but activity in these accounts impact stockholders' equity through the company's net income or net loss. When a company earns a profit, which is calculated after accounting for expenses and losses, the net income increases stockholders' equity. Conversely, when a company incurs a loss, this amount is subtracted from stockholders' equity.
The connection between these accounts and the current account balance in international trade is as follows: The dividends from stocks and the interest from bonds are considered as an import to income. This is part of the "income payments" of the current account balance, which includes money received by U.S. investors on foreign investments (money flowing into the country) and payments made to foreign investors (money flowing out of the country). It is important to understand that these income payments are seen as trade that occurs within the financial capital market and is counted alongside physical trade in goods and services.