Which of the following entail essentially the same accounting treatment?
A)Coupons for cash rebates and coupons for other premiums.
B)Cents-off coupons and coupons for other premiums.
C)Cents-off coupons and coupons for cash rebates.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Coupons for cash rebates and coupons for other premiums both involve recognizing a liability for the expected redemption of the coupons, whereas cents-off coupons are typically recognized as a reduction in revenue at the time of sale.

Which of the Following Entail Essentially the Same Accounting Treatment