The Train Wheel Gauge (The Distance Between Rails on a Train

question 144

Multiple Choice

The train wheel gauge (the distance between rails on a train track) is different in Mongolia than in Russia. When a train travels from one country into the other, the wheels on each train car must be changed at the border to allow the train to fit onto the track across the border in the other country. This situation indicates that

• A) interconnection of essential facilities is immediate and automatic.
• B) essential facilities are common, but interconnection is possible only at a great cost.
• C) interconnection of essential facilities is possible across the railway networks, but only with some inefficiency.
• D) interconnection of essential facilities is not possible with the technologies used.

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Definitions:

Periodic Basis

An accounting method where transactions are recorded and financial statements are prepared at regular, specific intervals, such as monthly, quarterly, or annually.

Bondholders

Individuals or institutions that hold the debt securities issued by corporations or governments, entitled to receive interest payments and the principal repayment.

Premium Amortization

The gradual reduction of the premium paid above the par value of a bond, allocated over the bond's life.

Bond Amortization Schedule

A schedule that outlines the periodic reduction of the discount on bonds payable or the premium on bonds payable, along with the interest expense over the life of the bond.