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:

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Account Upgrade

The process of improving or enhancing an existing account's features or services.

Software Problem

A flaw or dysfunction in a computer program or system that produces incorrect or unexpected results, or causes it to behave in unintended ways.

On-the-Job Training

Training that is delivered in the actual work environment, allowing employees to learn by doing while undertaking their regular job tasks.