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:

Customs Union

An agreement between two or more countries to remove trade barriers on imports and exports among them and adopt a unified set of trade tariffs for non-members.

EU

The European Union (EU) is a political and economic union of 27 European countries that are located primarily in Europe.

Common Law Systems

A legal framework where the laws primarily derive from precedents established by court decisions, emphasizing the role of judicial rulings and the importance of case law.

Nontariff Barrier

Measures other than tariffs that restrict imports or exports of goods and services, such as quotas and regulations.