Problem
The following questions are designed to highlight key concepts from the Loyalty Programs topic article titled, "StarBUCKS, Loyalty, and Breakage" (Nevraumont 2019).
• Gift card basics. The sum of Starbucks' physical and electronic gift cards amounts to $1.6bn or ~6% of the company's liabilities. Why are gift cards considered liabilities, and at what point can they be 'accounted' as revenue to the firm?