1. For part a,

i. Explain clearly what the term cookie-jar reserves meant.

ii. Explain clearly what the term big bath restructuring meant.

iii. Explain clearly why the cookie jar reserves and the big bath restructuring are not in conformity with GAAP. Refer to the Statement of Financial Accounting Standards No. 5 (FAS5) and the SECs Staff Accounting Bulletin No. 101 (SAB 101).

2. For part b,

i. Explain clearly what the term form over substance in revenue recognition meant.

ii. Explain clearly what the term form over substance in revenue recognition on a contingent sale is not in conformity with GAAP. Refer to FAS 5 and SAB 101.

3. For part c,

i. Explain clearly what the term channel stuffing in sales meant.

ii. Explain clearly what the term doom loop approach in earning management meant.

iii. Explain clearly why undisclosed or inadequate disclosed channel stuffing in sales and the doom loop approach in earning management do not meet the quarterly filing requirement of SEC. Refer to the SECs Regulation S-K items 101 and 303 for quarterly filing on Form 10-Q.

4. For part d

, i. Explain clearly what the term bill and hold sales meant.

ii. Explain clearly what criteria should be used to recognize revenue on Sunbeam Corporations bill and hold sales in conformity with GAAP.

iii. Explain clearly what criteria should be used to recognize revenue on Sunbeam Corporations bill and hold sales under the Parness criteria in conformity with the disclosure requirement of the SEC.