The Main Difference Between Accounting for Rebate and Cash Discount

question 94

Multiple Choice

The main difference between accounting for rebate and cash discount coupons is:

• A)The latter is not treated as an expense.
• B)Only the former creates a contingent liability when issued.
• C)The expense for the latter is deferred until redemption of the coupon.
• D)There are no significant differences in accounting between the two.

Recognize the formation of contracts based on mutual understanding of the offer.

Comprehend the role of communication method in offer acceptance.

Identify the implications of setting a period for offer acceptance.

Understand the legal effects of option contracts and considerations.

---

Definitions:

Resolving Conflict

The process of identifying and addressing differences that could lead to disagreements in a constructive and positive manner.

Face Saving

Actions taken to preserve one's own or another's reputation or dignity in a social context.

Wage Concession

An agreement where workers agree to lower their wages or benefits to help the employer reduce costs, often to avoid layoffs.

Union Representative

A designated individual who represents and defends the interests of union members within an organization.