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bate coupons 5. The nonredemption of gift certificates is called a. Breakage b. Forfeiture c. Rebate d. Waiver

bate coupons 5. The nonredemption of gift certificates is called a. Breakage b. Forfeiture c. Rebate d. Waiver

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem 2-32 Multiple choice (IFRS) 1. What is the accounting for the transaction price of a contract of sale with customer coupons for free product, discount or rebate? a. Entirely as product sales revenue b. Allocated to customer options equal to stand-alone selling and the balance to product sales c. Allocated between product sales revenue and based on stand-alone selling price d. Entirely as coupon revenue 2. What is the stand-alone selling price of free product coupons? a. Nothing b. Fair value less cost of disposal c. Selling price of free product d. Selling price of free product adjusted for expected redemption 3. What is the stand-alone selling price of discount coupons? a. Discount on customer purchases during the year b. Discount on customer future purchases c. Discount on customer purchases during the year adjusted by expected redemption d. Discount on customer future purchases adjusted by expected redemption 4. What is the stand-alone selling price of rebate coupons? a. Discount on products sold during the current year b. Discount on products sold during the current year adjusted by expected redemption c. Cost of products sold d. Fair value of rebate coupons 5. The nonredemption of gift certificates is called a. Breakage b. Forfeiture coupons c. d. Rebate Waiver 70 C W TE To To To
Transcribed Image Text:Problem 2-32 Multiple choice (IFRS) 1. What is the accounting for the transaction price of a contract of sale with customer coupons for free product, discount or rebate? a. Entirely as product sales revenue b. Allocated to customer options equal to stand-alone selling and the balance to product sales c. Allocated between product sales revenue and based on stand-alone selling price d. Entirely as coupon revenue 2. What is the stand-alone selling price of free product coupons? a. Nothing b. Fair value less cost of disposal c. Selling price of free product d. Selling price of free product adjusted for expected redemption 3. What is the stand-alone selling price of discount coupons? a. Discount on customer purchases during the year b. Discount on customer future purchases c. Discount on customer purchases during the year adjusted by expected redemption d. Discount on customer future purchases adjusted by expected redemption 4. What is the stand-alone selling price of rebate coupons? a. Discount on products sold during the current year b. Discount on products sold during the current year adjusted by expected redemption c. Cost of products sold d. Fair value of rebate coupons 5. The nonredemption of gift certificates is called a. Breakage b. Forfeiture coupons c. d. Rebate Waiver 70 C W TE To To To
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