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