Compression Testing Is Being Discussed

question 47

Multiple Choice

Compression testing is being discussed. Technician A says that the ignition should be disabled. Technician B says that the fuel system should be disabled. Who is correct?

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

---

Definitions:

Expense Warranty Accrual Method

An accounting practice where a company estimates the costs of warranties and records these costs as an expense when the corresponding sales are made.

Modified Cash Basis

An accounting method that combines elements of both cash and accrual accounting, recognizing revenues when they are received and expenses when they are paid, with some adjustments.

Warranty Revenue Recognition

The accounting process of recognizing revenue from warranties provided, typically over the period the warranty covers.

Coupon Redemption

The process of a bondholder or an investor submitting a bond's coupon to the issuer to receive interest payment.