Which of the Following Statements Accurately Describes Railroads in the United

question 41

Multiple Choice

Which of the following statements accurately describes railroads in the United States in 1860?

• A) The United States had more track than the rest of the world combined.
• B) American railroads lacked government support and therefore lagged behind the rest of the world.
• C) Railroad owners faced financial difficulties because they could not compete with canals.
• D) The railroads brought about the decline of the once great city of Chicago.
• E) They had an international reputation for punctuality.

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Definitions:

Accounts Payable Period

The time it takes for a company to pay off its suppliers after a purchase is made, typically measured in days.

Liberal Accounts Receivable Policy

A policy that involves offering lenient credit terms to customers, such as extended periods before payment is due, which can encourage sales but may increase the risk of bad debts.

Operating Cycle

The period it takes for a business to buy inventory, sell products, and collect cash from sales, reflecting the efficiency of a company’s operations.

Inventory Period

The average number of days that a company holds its inventory before selling it, indicating the efficiency of its inventory management.