1. Under the percentage of completion method, how are construction in process and the billings on construction reported in the balance sheet?
2. Explain a bill and hold sale
3. How are operating expenses, those not in cost of goods sold, handled under the installment sales method of accounting? Explain the rationale for the treatment.
4. What are the criticisms for the GAAP treatment of revenue recognition?
5. Explain the circumstances that determine which method of long term contracts is applicable. Give an example of each
6. Explain the cost recovery method and when would it be applicable
7. Explain channel stuffing and why the concept is in this chapter. Give an example of channel stuffing
8. Explain consignments.
9. What methods are used to determine the extent of progress toward completion? Identify some input and output measures that would be utilized to make the correct determination.
10. How does the deposit method differ from the installment method and the cost recovery method?