When a U.S.company makes a $200,000 donation to the International Red Cross to help the victims of an earthquake in India, the transaction is recorded in the

Question

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The transaction is recorded in the current account, which tracks the flow of goods and services between countries as well as transfers such as donations. The official settlements account tracks international assets and liabilities, while the capital account tracks the movement of financial assets. The terms "international help account" and "one-way donations account" are not standard categories in international accounting.

When a USCompany Makes a $200,000 Donation to the International Red Cross