Reporting Transactions and Events in Interim Financial Statements

Following are six independent cases on how accounting transactions and events might be reported on a company's interim financial reports. State whether the proposed decision is acceptable, not acceptable, or either depending on specific factors according to generally accepted accounting principles as applicable to interim financial data.

Cases

Company management was reasonably certain it would have an employee strike in second quarter but plans to defer the recognition of the sales in excess of its normal s third quarter, when the strike is in progress. Management thinks this is more represen

The company takes a physical inventory at year$-$end for annual financial statement p quarterly statements are based on estimated gross profit rates because a physical inve The company has reli$-$able perpetual inventory records.

The company is planning to report one$-$fourth of its annual pension expense each $q$

The company wrote down inventory to reflect lower of cost or market in the first qui acquisition cost of this inventory. Consequently, management plans to write the invent

The company realized a large gain on the sale of investments at the beginning of the of the gain in each of the remaining quarters.

The company has estimated its annual audit fee. Management plans to prorate this