1. Explain Revenue Recognition methods (percentage of
completion, completed production, traditional, installment)
2. Explain Expense Recognition methods (cause & effect,
rational & systematic, immediate recognition)
3. Describe Fair value hierarchy: Level 1 - observable (quoted
prices), Level 2 (prices of similar items observable), Level 3
(non-observable – must base value on assumptions)
4. Identify the four basic assumptions of accounting: Economic
entity, monetary unit, periodicity, and going concern
5. Recognize the two fundamental qualitative characteristics of
financial reporting: Relevance and...