3 4 5 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 2 QUESTIONS Companies should use the percentage-of completion method to account for long-term construction contracts A when estimates of progress towards satisfaction of the performance obligation (completion) are not dependable. OB. when the company has primarily short-term contracts. C unless required to use the completed-contract method. when there are inherent hazards in the contract beyond the normal, recurring business risks. D QUESTION 6 QUESTION 6 Which of the following does the FASB argue indicates a more realistic measure of the employer's obligation under the pension plan on a going concern basis and should be used as the basis for determining service cost? DA Accumulated benefit obligation 1. Projected benefit obligation None of these answers are correct D.Vested benefit obligation