The main difference between accounting for rebate and cash discount coupons is:
A)The latter is not treated as an expense.
B)Only the former creates a contingent liability when issued.
C)The expense for the latter is usually deferred until redemption of the coupon.
D)There are no significant differences in accounting between the two.

Question

Quizplus · Accepted Answer

The expense for cash discount coupons is deferred until the coupon is redeemed, whereas accounting for rebates is treated as an expense when the rebate is issued.

The Main Difference Between Accounting for Rebate and Cash Discount