Final answer:
To close expense accounts, a credit to the expense accounts and a debit to the Income Summary account is included. This zeroes out the expenses for the new period and updates the owner's equity with the profit or loss. In international trade terms, summing exports, imports, and the balance column gives the current account balance.
Step-by-step explanation:
The entry to close the expense accounts typically includes a credit to the expense accounts and a debit to the owner's equity account (specifically the Income Summary account in a closing entry). At the end of an accounting period, expenses are balanced by transferring their balances to the Income Summary, which effectively zeroes out the expense accounts for the start of the new accounting period and updates the capital account to reflect the period's profit or loss.
Additionally, in the context of international exports and imports, the current account balance is calculated by summing up the columns for Exports, Imports, and Balance in a country's balance of payments. The first number under Balance will then represent the net exports or the difference between the value of exports and imports, playing a crucial role in the country's balance of payments.