(Examining the periodic reporting assumption, LO 3) For each of the following situations, explain the accounting problems and difficulties created because of the requirement for periodic reporting. Include other accounting assumptions, qualitative characteristics, and measurement conventions in your discussion if they are relevant.

a. An airline purchases a new Boeing 767 aircraft.

b. An engineering company decides to recognize revenue on a large dam project in a Third World country using the percentage-of-completion method.

c. A button manufacturer sells to clothing manufacturers around the world.

Customers are required to pay within 60 days of delivery. The button manufacturer recognizes revenue when buttons are shipped to customers.

d. An oil refiner produces gasoline from crude oil and sells it to independent gas stations across Ontario. The crude oil is purchased at market prices and stored in large containers until it is refined. A single container mixes together different batches of crude oil that cost significantly different amounts because the price of crude can vary greatly.