1. What is the difference between the percentage of completion and completed contract methods of accounting for long term contracts? When should each be used?
 
 
 
 
 
 
 

2. When should an initial franchise fee be recognized?
 
 
 
 
 
 
 
 
 
 
 

3. What is the difference between the installment sales and the cost recovery method of income recognition?
 
 
 
 
 
 
 
 

4. What are two types of losses that can occur in accounting for long term contracts? What is the difference in the way each is accounted for?