A Specific Automotive Part That a Service Station Stocks in Its

question 4

Multiple Choice

A specific automotive part that a service station stocks in its inventory has an 8% chance of being defective. Suppose many cars come into the service station needing this
Part each week. What is the expected number of parts retrieved until the first defective?

• A) 8
• B) 12.5
• C) 10.5
• D) 15
• E) 20

---

Definitions:

Adjusted Cash Balance

The cash amount shown in the books after adjustments have been made for checks, deposits in transit, and other items.

September Bank Reconciliation

The process of matching and comparing figures from the accounting records against those presented on the September bank statement to ensure consistency and accuracy in the financial records.

Cash Receipts Journal

A financial journal that records all cash inflows or receipts of a business, including sales cash and account receivables collections.

Incorrectly Recorded

Refers to an error in documenting financial or other records, leading to inaccuracies in the accounting or data management process.