Losses in long-term construction projects
A)are generally deferred until the contract is complete.
B)are only recognized immediately under the completed-contract method.
C)are only recognized immediately under the percentage-of-completion method.
D)are recognized immediately under both the completed-contract method and the
Percentage-of-completion method.

Question

Quizplus · Accepted Answer

Losses in long-term construction projects are recognized immediately under both the completed-contract method and the percentage-of-completion method to ensure that financial statements reflect the economic reality of the project.

Losses in Long-Term Construction Projects