Cost Estimates on a Long-Term Contract May Indicate That a Loss

question 3

Multiple Choice

Cost estimates on a long-term contract may indicate that a loss will result on completion of the entire contract. In this case, the entire expected loss should be

• A) recognized in the current period, regardless of whether the percentage-of-completion or completed-contract method is used.
• B) recognized in the current period under the percentage-of-completion method, but the completed-contract method should defer recognition of the loss to the time when the contract is completed.
• C) recognized in the current period under the completed-contract method, but the percentage-of-completion method should defer the loss until the contract is completed.
• D) deferred and recognized when the contract is completed, regardless of whether the percentage-of-completion or completed-contract method is used.

---

Definitions:

SAT

The SAT is a standardized test widely used for college admissions in the United States.

Gendering Cognition

The process by which society and culture shape the way we think about gender and how it influences our perceptions and actions.

Honor Roll

A list of individuals or entities recognized for achieving a certain level of excellence or meeting specified criteria, often found in academic institutions.

AP Classes

Advanced Placement classes, which are college-level courses offered in high school allowing students to earn college credit upon passing an exam.