Which of the following statements would be an indication that the firm may use the percentage-of-completion method?
I). A reliable estimate of the costs of the project cannot be estimated; however the contractor does have cost data from other projects.
II). There exists some uncertainty about the current credit-worthiness of the purchaser of the contract, but he has paid billings in the past.
III). There is no formal contract; however there exists a verbal contract between the two parties.
IV). A reliable estimate of the portion of the contract that has been completed can be made.

The impact of volatility on the price of a callable bond can be described as follows

A firm owns a building with a book value of $100,000 and a market value of $250,000. If the building is utilized for a project, then the opportunity cost ignoring taxes is:

A recent annual report included the following information:
Note 5: Assets placed in service before January 1, 1997, are depreciated using an accelerated method.
Assets placed in service in 1997 will be depreciated using the straight-line method of depreciation. This change in accounting principle is being made to reflect improvements in the design and flexibility of manufacturing machinery and equipment and improvements in maintenance practices. These improvements have resulted in more uniform productive capacities and maintenance costs over the useful life of an asset. Straight-line is preferable in these circumstances. The change is expected to improve
1 997 after-tax results by $80 to $100 million. The change was not made for income tax reporting purposes.
Which of the following would generally be true as a result of this change?

Which one of the following is an example of "other revenues and gains" in a multiple income statement for a manufacturing company?
I). dividend revenue.
II). rental revenue.