While Having a Discussion, Technician a Says That in a Typical

question 9

Multiple Choice

While having a discussion, Technician A says that in a typical front-wheel-drive transmission, fourth gear would be accomplished by locking the input shaft to the output shaft for a 1:1 ratio. Technician B says that this occurs in a typical rear-wheel-drive transmission. Who is correct?

• A) A only
• B) B only
• C) Both A and B
• D) Neither A nor B

---

Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated as current assets divided by current liabilities.

Earnings Before Interest

An indicator of a company's profitability calculated by subtracting all expenses except interest from revenues, commonly referred to as EBIT.

Tax (EBIT)

Taxation calculated on Earnings Before Interest and Taxes, representing the income tax expense charged on a company's operating profit.

Horizontal Analysis

A financial analysis technique that compares historical financial data over a series of reporting periods to identify trends and growth patterns.