Sludge Is Being Discussed

question 3

Multiple Choice

Sludge is being discussed. Technician A says sludge results from the oxidation of oil. Technician B says a slight buildup on the underside of the oil fill cap is normal. Who is correct?

• A)A only
• B)B only
• C)both A and B
• D)neither A nor B

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Definitions:

Balance Sheet

A financial statement that shows the assets, liabilities, and shareholders' equity of a company at a specific point in time, reflecting the company's financial position.

Bonds Payable

A long-term debt instrument issued by a corporation or government, promising to pay back with interest the money borrowed from investors.

Stockholder's Equity

What remains of a corporation's assets after liabilities are accounted for, denoting the interest of owners.

Long Term

Referring to assets, liabilities, or investments expected to last, or commitments expected to be active, for more than one year.