Which of the Following Is True of Foreign Trade Zones?​

question 110

Multiple Choice

Which of the following is true of foreign trade zones?​

• A) ​These are areas that are physically outside U.S.soil but are considered to be inside U.S.commerce.
• B) ​Goods entering foreign trade zones are subject to duty until they leave the zones.
• C) Federal government has made it mandatory for U.S.companies to set up manufacturing plants within the foreign trade zones.
• D) ​Companies that have set up manufacturing plants within the foreign trade zones are free from paying duty on defective materials.

---

Definitions:

Equity Method

An accounting technique used to record investments in other companies, recognizing income proportional to the ownership percentage.

Net Income

A company's ultimate earnings after all taxes, costs, and expenses are subtracted from the gross income.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting its consumption, wear and tear, or obsolescence.

Equity Method

An accounting technique used to record investments in other companies, recognizing income based on the investor's share of the investee's profits.