A Vehicle Comes into the Shop with the Customer Complaining

question 57

Multiple Choice

A vehicle comes into the shop with the customer complaining about their transmission not working correctly. You test drive the vehicle and find that 4th gear is slipping. Tech A states that the problem could be a bad solenoid A. Tech B states that the problem could be a cracked drum. Who is correct?

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

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Definitions:

Significant Influence

The power to participate in the financial and operating policy decisions of an investee, but not control them, often associated with ownership of 20% to 50% of voting stock.

Cost Method

An accounting method where investments are recorded at their acquisition cost.

Journal Entries

The method by which transactions are recorded in the company's accounting records with a debit and credit entry.

Significant Influence

The ability to be involved in the financial and managerial policy decisions of an investment without having controlling authority over those policies.