Rendina Inc

question 114

Multiple Choice

Rendina Inc.offers a cash rebate of Rs50 on each Rs200 package of biscuits sold during the last three months of 2011.Historically, 30% of the company's customers mail in the rebate form.During the last three months of 2011, 7,700,000 packages of biscuits are sold, and 1,470,000 Rs50 rebates are mailed to customers.What is the rebate expense and liability, respectively, shown on the company's 2011 financial statements?

• A)Rs115,500,000; Rs42,000,000.
• B)Rs115,500,000; Rs115,500,000.
• C)Rs1,155,000; Rs735,000.
• D)Rs$11,550,000; Rs4,550,000.

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Definitions:

Victimization

The process of being made a victim through harmful actions such as abuse, exploitation, or violence.

Sympathy

Sympathy is the feeling of pity, compassion, or sorrow for the misfortunes or suffering of others.

Resentment

Persistent feelings of bitterness or ill will towards someone or something perceived as having caused harm or injustice.

Counter-Revenge

Actions or strategies designed to neutralize or respond to acts of revenge, aiming to de-escalate a conflict.