1. Business
  2. Accounting
  3. 15 constructive obligations may arise from a accrued liabilities resulting...

Question: 15 constructive obligations may arise from a accrued liabilities resulting...

Question details

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.

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution