Final answer:
It is false that companies do not need to record a contingent liability when they offer coupons or premiums; they must estimate and report these potential liabilities in their financial statements.
Step-by-step explanation:
When a company uses coupon or premium offers in conjunction with the sale of its products, it is false to say that there is no need to record any contingent liability. Often, coupons or premiums are offered to customers as an incentive to buy products, and they can eventually be redeemed for goods, services, or cash discounts. Therefore, the company is potentially obligated to provide something of value in the future. These offers can be considered conditional commitments that may result in a future outflow of resources embodying economic benefits, thus creating a contingent liability. Companies must estimate and record the potential liability associated with these promotional offers in their financial statements according to accounting standards.