The Purpose of an Automobile Service Contract Is To

question 58

Multiple Choice

The purpose of an automobile service contract is to:

• A) reduce operating costs of the vehicle.
• B) cover regular maintenance.
• C) provide automobile insurance at a discount.
• D) repair major problems after the warranty expires.
• E) stay informed of government safety recalls.

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Definitions:

Fees Earned

Income earned through the delivery of services.

Wages Expense

An account representing the total cost of labor paid to employees, typically recorded over a specific accounting period.

Dividends

Payments made by a corporation to its shareholder members from the company's earnings.

Investment

The allocation of resources, often money, in the expectation of generating an income or profit.