1. In 2010, LinkedIn reported trade payable obligations totaling $10.8 million in other accrued expenses within accrued liabilities instead of accounts payable. In 2011, note 2 in the 10-K financial statements described the use of accrued liabilities instead of accounts payable as a classification. Do you believe LinkedIns accounting qualifies as a financial shenanigan?

2. Tineseltown Construction just received a $2 billion contract to construct a modern football stadium in the City of Industry, located in southern California, for a new National Football League (NFL) team called the Los Angeles Devils of Industry. The company estimates that it will cost $1.5 billion to construct the stadium. Explain how Tineseltown can make revenue recognition decisions each year that enable it to manage earnings over the three-year duration of the contract.