A Transcontinental Railroad Had Not Been Built Before the Civil

question 50

Multiple Choice

A transcontinental railroad had not been built before the Civil War because

• A) the Appalachian Mountains presented great engineering problems.
• B) Congress refused to consider federal subsidies for a private railroad.
• C) the technologies for building tunnels through the Rockies did not yet exist.
• D) many southern states used the states' rights argument to reject federal aid for railroads.
• E) North-South sectional differences prevented Congress from selecting a route.

Grasp the impact of timing on revenue and expense recognition and its effect on financial statements.

Identify the principles of revenue recognition and expense matching.

Understand the concepts of prepaid, unearned, and accrued items in accounting.

Comprehend the significance of the matching principle in accrual accounting.

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Definitions:

Provision

A liability of uncertain timing or amount, recognized when an entity has a legal or constructive obligation as a result of past events, and it is probable that an outflow of resources will be required to settle the obligation.

Discreet Approach

A method or strategy that is conducted with subtlety and reserve, often to avoid attracting undue attention or to handle sensitive matters.

Integral Approach

An accounting method that combines the financial statements of a parent company and its subsidiaries into one comprehensive set of statements.

Pre-tax Interim Net Income

The net income earned before taxes are deducted during an interim period, such as a quarter or half-year.