Problem 2-32 Multiple choice (IFRS)1. What is the accounting for the transaction price of acontract of sale with customer coupons for free product,discount or rebate?a. Entirely as product sales revenueb. Allocated to customer options equal to stand-aloneselling and the balance to product salesc. Allocated between product sales revenue andbased on stand-alone selling priced. Entirely as coupon revenue2. What is the stand-alone selling price of free productcoupons?a. Nothingb.Fair value less cost of disposalc. Selling price of free productd. Selling price of free product adjusted for expectedredemption3. What is the stand-alone selling price of discount coupons?a. Discount on customer purchases during the yearb. Discount on customer future purchasesc. Discount on customer purchases during the yearadjusted by expected redemptiond. Discount on customer future purchases adjusted byexpected redemption4. What is the stand-alone selling price of rebate coupons?a. Discount on products sold during the current yearb. Discount on products sold during the current yearadjusted by expected redemptionc. Cost of products soldd. Fair value of rebate coupons5. The nonredemption of gift certificates is calleda. Breakageb. Forfeiturecouponsc.d.RebateWaiver70CWTEToToTo

#requirement 5 has been answered. The terms are explained below- Forfeiture= the amount forfeited…

Answered: bate coupons 5. The nonredemption of…

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

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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Question

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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