The Agreement Signed in 1994 Between Canada, the U

question 41

Multiple Choice

The agreement signed in 1994 between Canada, the U.S., and Mexico, which has created a largely free-trade zone between these three nations with all tariffs eliminated as of 2003, is:

• A) GATT.
• B) NAFTA.
• C) FTAA.
• D) WTO.

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Definitions:

Straight-line Method

A depreciation method where the value of an asset is reduced evenly over its useful life.

Journal Entries

Records of financial transactions in the accounting system, indicating the accounts and amounts to be debited and credited.

Equipment Cost

The purchase price of machinery and tools required for manufacturing or providing services, excluding ongoing operating expenses.

Salvage Value

The calculated sale amount an asset is deemed to achieve after its useful life concludes.