Technician a Says That Some Shops Always Replace the Torque

question 10

Multiple Choice

Technician A says that some shops always replace the torque converter with a new or rebuilt unit. Technician B says that if reusing a torque converter, be sure to wipe off any fluid before reinstalling. Who is correct?

• A) Technician A
• B) Technician B
• C) Both technicians
• D) Neither technician

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Definitions:

Historical Cost Principle

An accounting principle stating that assets should be recorded and reported at their original purchase price.

Contingent Consideration

A future payment in a business acquisition that depends on specific outcomes or events occurring after the acquisition date.

Parent Company Method

An approach to preparing consolidated financial statements where the parent company's balances and transactions are presented as the primary entity.

Carrying Amounts

The value at which an asset or liability is recognized in the balance sheet after accounting for depreciation, amortization, and impairment costs.