Question 5 1 pts Losses on unprofitable long-term construction projects are generally deferred until the contract is complete. are only recognized immediately under the percentage-of-completion method. are only recognized immediately under the completed-contract method. are recognized immediately under both the completed-contract method and the percentage-of-completion method. Question 6 1 pts The principal disadvantage of using the percentage-of-completion method of recognizing revenue from long-term contracts is that it gives results based upon estimates which may be subject to considerable uncertainty. is likely to assign a small amount of revenue to a period during which a large amount of revenue was earned. no revenue is recognized during the contract. is unacceptable for income tax purposes. Question 7 1 pts Under ASPE, when work to be done and costs to be incurred on a long-term contract can be estimated reliably, which of the following methods of revenue recognition is preferable? completed-contract method zero-profit method percentage-of-completion method instalment method