A Cereal Company Issues Coupons That Can Be Exchanged for Boxes

question 46

Multiple Choice

A cereal company issues coupons that can be exchanged for boxes of cereal.It issues two million coupons that promise the retailer who redeems the coupons $1 per coupon.The probability of redemption of any one coupon is 10%. What is the amount of the liability that the company recognizes?

• A)$2,000
• B)$20,000
• C)$100,000
• D)$200,000
• E)$2,000,000

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Definitions:

Inpatient Settings

Medical facilities or sections of facilities where patients are admitted and stay overnight or for longer periods for treatment and care.

Inpatient Accident

An incident that occurs within a hospital or healthcare facility affecting a patient admitted for at least one night.

Restrain Patients

The practice of physically or chemically limiting the movements of patients to prevent harm to themselves or others, used under specific, ethical guidelines.

Pressure Ulcers

Injuries to skin and underlying tissues, typically on bony areas, resulting from prolonged pressure on the skin.