Two Technicians Are Discussing Dealership Operations

question 62

Multiple Choice

Two technicians are discussing dealership operations. Technician A says that dealerships are normally independent or corporate businesses. Technician B says that a general manager typically operates the dealership. Who is correct?

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

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Definitions:

General Ledger Control Account

A General Ledger Control Account is a summary account that consolidates the total balances of all accounts in a subsidiary ledger, used to maintain integrity in financial reporting.

Subsidiary Ledger

A detailed ledger that contains the individual accounts with a common characteristic, supporting entries recorded in a general ledger.

Accounting Period

The span of time at the end of which a company's financial statements are prepared, typically a quarter or year.

Cost Effectiveness

A measure of the economic efficiency in terms of the cost incurred for a given outcome or result.