In Exporting, Local Products Are Sold to Foreign Customers

question 87

True/False

In exporting, local products are sold to foreign customers.

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Definitions:

FICA Tax

Federal Insurance Contributions Act tax; a U.S. federal payroll tax that funds Social Security and Medicare.

Medicare Tax

A federal payroll tax that funds Medicare, the health insurance program for individuals aged 65 and over, as well as for some younger people with disability status as determined by the Social Security Administration.

Payroll Period

The interval of time for which an employee's wages are calculated, such as weekly, bi-weekly, or monthly.

Salaries Payable

An account that represents the amounts owed but not yet paid to employees for services rendered.