Question

Screen Capture Foroe Completion This teat can be savad and eumed atary point ual time has expred The timar wil contrue to run i you leave the tast. Remaining Time: 1 hour, 09 minutes, 09 seconds. Question Completion Status Morg anerar queston wil save this worse Queston 2 of 20 Question 2 points Answer Khaled Repair Shop follows te revenue recognition principle. haled sences a car cn October 31 The customer picks up the vehicle on November l and ma Khaled receives the check in the mail on November 6. When should he shew that the revenue was earned s the payment to Khaled on November . O November 1 O Navember 6 O November S o odber 31 Cleee Window

Answer 1

November 1

As per Accounting standards revenue should be recognized only when the rendering of services under a contract is completed or substantially completed.

As the service is completed on November 1st (including delivery of vehicle), the same day revenue should be recognized