An 1816 Senate Report Stated That It Cost the Same

question 42

Multiple Choice

An 1816 Senate report stated that it cost the same to transport one ton of goods across the Atlantic Ocean as it did to move one ton of goods ____ miles inland.

• A)10
• B)30
• C)60
• D)90
• E)150

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Definitions:

Accruals

Accounting adjustments for revenues that have been earned or expenses that have been incurred but have not yet been recorded through a cash transaction.

Accrual Accounting

Accounting method that records revenues and expenses when they are incurred, regardless of when cash is exchanged.

Cash Basis Accounting

An accounting method recording transactions when cash is received or paid, irrespective of when revenues or expenses were incurred.

Adjusting Entries

End-of-period accounting insertions to correctly allocate revenues and costs to the specific timeframe in which they occurred.