Intermediate Accounting Final Exam Questions and answers with Complete Solutions

Intermediate Accounting Final Exam Questions and answers with Complete Solutions Accounting for costs of incentive programs for frequent customer purchases involves - Recording an expense and a liability each period The accounting concept that requires recognition of a liability for customer premium offer is - The matching principle When a material gain contingency is probable and the amount of the gain can be reasonably estimated, the gain should be - disclosed, but not recognized in the income statement The main difference between accounting for a rebate and a cash discount coupon is: - The expense for the latter is usually deferred until redemption of the coupon Accounting for cost of incentive programs for customer purchase: - All of the above are correct. A company should accrue a loss contingency only if the likelihood that a liability has been incurred is: - Probable and the amount of the loss can be reasonably estimated