Question
15. Constructive obligations may arise from: A. Accrued Liabilities resulting from operations. B. Warranty obligations. C. Notes Payable. D. Unearned Revenues. 16. A company had
15. Constructive obligations may arise from: A. Accrued Liabilities resulting from operations. B. Warranty obligations. C. Notes Payable. D. Unearned Revenues.
16. A company had sales of $1 million. Coupons in the amount of $1 per $10 in sales were given to paying customers. History has shown that 50% of all coupons are redeemed. Which of the following statements is correct? A. A provision for $50,000 must be recognized. B. A provision for $100,000 must be recognized. C. A provision for $1 million must be recognized. D. No provision is necessary.
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