When Customs Officials Set a Value on Which to Place

question 61

True/False

When customs officials set a value on which to place an import tariff,they ordinarily use the declared invoice price unless they doubt its authenticity.

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Definitions:

Treasury Stock

Shares that were issued and subsequently reacquired by the company itself, reducing the amount of outstanding stock on the open market.

Common Stock

An ownership stake in a corporation, represented through a security known as corporate equity ownership.

Retained Earnings

Profits that a company keeps at the end of a fiscal period, after dividends are paid, for reinvestment or debt payment.

Additional Paid-in Capital

The amount of money that shareholders have paid in excess of the par value of the shares; this can occur when shares are initially sold or during subsequent capital injections.