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:

Ionic Bond

A type of chemical bond formed through the electrical force between oppositely charged ions.

Calorie

A unit of energy often used to quantify the amount of energy food provides to the human body.

Van der Waals Interaction

A weak force of attraction between molecules or parts of molecules that results from transient fluctuating electrical charges.

Hydrogen Bond

A weak chemical bond formed between the hydrogen atom of one molecule and an electronegative atom (often oxygen or nitrogen) of another molecule.