While Discussing LTFT and STFT When the STFT Number Is

question 35

Multiple Choice

While discussing LTFT and STFT when the STFT number is -20 and the LTFT number is -20: Technician A says these numbers indicate the PCM is trying to decrease fuel delivery. Technician B says these numbers indicate a normal condition. Who is correct?

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

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Definitions:

Allowance for Doubtful Accounts

An accounting entry known as a contra-asset account that predicts the amount of accounts receivable that might be uncollectible.

Realizable Value

The estimated amount for which an asset can be sold, minus any selling costs, at a given point in time.

Materiality Constraint

An accounting principle that allows for the ignoring of accounting information that would not impact users’ decision-making due to its insignificance.

Factoring Accounts Receivable

The financial practice of selling accounts receivable to a third party at a discount to obtain immediate cash.