Anticipated losses are recognized immediately under which of the following methods of recognizing revenue? $\begin{array}{lll}
& \text {Percentage of}& \text {Completed}\
& \text {Completion}& \text {Contract}\

\text { I. } & \text { Yes } & \text { No } \
\text { II. } & \text { No } & \text { No } \
\text { III. } & \text { Yes } & \text { Yes } \
\text { IV } & \text { No } & \text { Yes }
\end{array}$

A)I
B)II
C)III
D)IV

Question

Anticipated losses are recognized immediately under which of the following methods of recognizing revenue? $\begin{array}{lll}
& \text {Percentage of}& \text {Completed}\
& \text {Completion}& \text {Contract}\

\text { I. } & \text { Yes } & \text { No } \
\text { II. } & \text { No } & \text {  No  } \
\text { III. } & \text { Yes } & \text { Yes } \
\text { IV } & \text { No } & \text { Yes } 
\end{array}$

A)I
B)II
C)III
D)IV

Quizplus · Accepted Answer

Under both the Percentage of Completion and Completed Contract methods, anticipated losses are recognized immediately. This is because recognizing such losses as soon as they are anticipated is a principle of conservatism in accounting, ensuring that financial statements do not overstate the financial position or performance of a company.

Anticipated Losses Are Recognized Immediately Under Which of the Following