1. A mark-up of 25% on cost is equivalent to what mark-up on selling price? a. 15% b. 20% c. 25% d. 33% 2. A new entity manufacturing and selling consumable products has come out with an offer to refund the cost of purchase within one month after the sale if the customer is not satisfied with the product. When should the entity recognized the revenue? a. At the time of sale along with an offset to revenue of the liability of the same amount for the possibility of the return. b. Only if the goods are not returned by the customers after the period of one month. c. When goods are sold to customers. d. After one month of sale