If an Auto Mechanic Typically Spends 50 Minutes Repairing a Car

question 170

Multiple Choice

If an auto mechanic typically spends 50 minutes repairing a car, how many cars can the auto mechanic work on in a 7.5 hour workday?

• A)11
• B)12
• C)9
• D)10

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Definitions:

Unearned Revenues

Income received by a company for goods or services yet to be delivered or performed.

Liability Uncertainty

Liability uncertainty involves not knowing the exact amount or timing of future outflows due to existing obligations.

Sales Taxes Payable

Current liabilities on a company’s balance sheet, representing taxes collected from customers on behalf of governmental authorities which are yet to be remitted.

Credited

An accounting entry that increases a liability or equity account, or decreases an asset or expense account.