Fang's Tune-Up Shop Uses the Accrual Basis of Accounting

question 36

Multiple Choice

Fang's Tune-Up Shop uses the accrual basis of accounting.Fang services a car on May 31.The customer picks up the vehicle on June 1 and mails payment to Fang on June 5.Fang receives the cheque in the mail on June 6.When would Fang recognize the revenue as being earned?

• A)June 6
• B)June 5
• C)June 1
• D)May 31

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Definitions:

Trait Theory

A theoretical framework in psychology that focuses on the identification and measurement of specific personality traits.

Situational Factors

External influences that affect an individual's behavior, choices, and psychological well-being at any given moment.

Predictability

The ability to accurately forecast future events or behaviors based on current knowledge or analysis.

Mischel's Critique

Refers to psychologist Walter Mischel's argument against the consistency of personality traits, suggesting situational variables play a significant role in behavior.