Final answer:
Revenue for the sale of tangible goods is recognized at the time of shipment, which is when control typically passes to the buyer. This ties into the calculation of revenue using the Total Revenue = Price x Quantity formula.
Step-by-step explanation:
The question revolves around the correct timing for revenue recognition on the sale of tangible goods. According to accounting principles, revenue is recognized when it is earned and realizable, which typically occurs at the point of delivery or transfer of control to the customer. In this case, the correct answer is C) At the time of shipment. This is when the seller has completed a significant part of its obligation by delivering the goods, and control is transferred to the buyer, assuming that all other revenue recognition criteria have been satisfied.
Total revenue is the income generated from selling products and is calculated by the formula Total Revenue = Price x Quantity. This indicates how revenue is tied to the sale of goods and services, which is fundamentally linked to when control of those goods is transferred to the buyer, typically at shipment.