Losses on Unprofitable Long-Term Construction Projects

question 104

Multiple Choice

Losses on unprofitable 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.

---

Definitions:

Normally Open

Describes a switch or relay contact that is in a default open state, allowing current to flow only when the contact is actuated to close.

Normally Closed

A term referring to an electrical switch or circuit state where the contacts are closed (allowing current flow) when no actuating force is applied.

Electrical State

An electrical state refers to the condition of an electrical component or system, such as being charged, discharged, on, or off.

Drum Switch

A switch used to change the direction of rotation of an electric motor or machine tool.