Which Problem Is Not Listed in the Text as Being

question 85

Multiple Choice

Which problem is not listed in the text as being committed in auto repair shops?

• A) "Bait and switch" repair schemes
• B) Intentional misrepresentation of repair needs
• C) Part replacement problems
• D) Stealing working parts for resale

---

Definitions:

Allowance for Doubtful Accounts

A contra-asset account that represents the amount of accounts receivable a company does not expect to collect.

Accounts Receivable

The money owed to a business by its customers for goods or services that have been delivered or sold but not yet paid for.

Allowance Method

An accounting technique used to account for bad debts, estimating uncollectible accounts as an expense to the income statement and reducing accounts receivable on the balance sheet.

Allowance Method

An accounting technique used to estimate and account for bad debts by establishing an allowance for doubtful accounts.