The Current (Commonly Used) Accounting Treatment for Premiums and Coupons

Multiple Choice

The current (commonly used) accounting treatment for premiums and coupons requires that the costs should

A) be recorded at the maximum possible redemption cost in the year of the related sales.
B) be recorded at the total estimated redemption cost in the year of the related sales.
C) be recorded in the year(s) that the redemption is expected to occur.
D) not be recorded at all.