Otto's Tune-Up Shop Follows the Revenue Recognition Principle

question 180

Multiple Choice

Otto's Tune-Up Shop follows the revenue recognition principle.Otto services a car on August 31.The customer picks up the vehicle on September 1 and mails the payment to Otto on September 5.Otto receives the check in the mail on September 6.When should Otto show that the revenue was recognized?

• A)August 31
• B)August 1
• C)September 5
• D)September 6

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Definitions:

Fair Deal's Goal

The aim of President Harry S. Truman's set of proposals to Congress in 1949 for domestic policy reforms, including improved social security, housing, and civil rights.

Standard of Living

The level of wealth, comfort, material goods, and necessities available to a person, community, or society.

McCarthyism

A period of intense anti-communist suspicion in the United States around the early 1950s, characterized by political repression and accusations of subversion or espionage without proper regard for evidence.