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

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 usually deferred until redemption of the coupon.
D. There are no significant differences in accounting between the two.




Answer: C


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