A customer loyalty provision specifically refers to
A)points that a customer has redeemed in the past.
B)the liability related to the unused loyalty points or credits.
C)the revenues earned from the use of points.
D)the cash received from the use of points.

Question

Quizplus · Accepted Answer

A customer loyalty provision refers to the liability related to unused loyalty points or credits, as companies must account for the value of these points as a liability on their balance sheets until they are redeemed by customers. Points that have been redeemed or the revenue/cash earned from the use of points are not considered part of the customer loyalty provision.

A Customer Loyalty Provision Specifically Refers to