On the Question of Whether American Laws Applied to the Overseas

question 21

Multiple Choice

On the question of whether American laws applied to the overseas territory acquired in the Spanish-American War,the Supreme Court ruled in the Insular Cases that

• A) the American Constitution and laws did not apply to U.S. colonies.
• B) the president could determine which U.S. laws applied in U.S. colonies.
• C) federal but not state laws applied.
• D) only tariff laws could be forced.
• E) only the Bill of Rights applied.

Understand the estimation of bad debt expense based on historical relationships and its impact on financial statements.

Recognize the advantages and appropriate application of the net price method for recording cash discounts on credit sales.

Analyze the treatment of uncollectible accounts under different accounting methods and the conceptual rationale behind these methods.

Comprehend the accounting for sales of accounts receivable, including factoring and assignment, and its impact on financial statements.

---

Definitions:

Commercial Rights

The legal rights granted to businesses and individuals to engage in activities related to commerce, trade, and intellectual property.

Embargo Act

A historical law passed by the United States in 1807, prohibiting American ships from trading in all foreign ports to avoid conflicts.

New England Textile Mill

Factories located in the New England region of the United States, notably active during the 19th and early 20th centuries, important for the development of the Industrial revolution in America, primarily producing textiles.

Hartford Convention

A series of meetings from December 1814 to January 1815 in Hartford, Connecticut, where New England Federalists gathered to discuss their grievances concerning the War of 1812 and political problems arising from federal government's increasing power.