When a contractor determines that a contract will result in an overall loss,when should that loss be recognized within the completed-contract and percentage-of-completion methods? Completed-Contract Percentage-of-Completion
A) Immediately Over the remainder of the contract
B) At the completion of the contract At the completion of the contract
C) At the completion of the contract Immediately
D) Immediately Immediately

Question

Quizplus · Accepted Answer

Under the completed-contract method, losses are recognized immediately to reflect the expectation of a loss as soon as it is anticipated. Similarly, under the percentage-of-completion method, losses are recognized immediately for the same reason, ensuring that financial statements reflect the most accurate and current information.

When a Contractor Determines That a Contract Will Result in an Overall