When a loss occurs in the current period on a profitable long-term contract, the loss is:

A. recognized under the completed-contract method.
B. not recognized under either the completed-contract method or the percentage-of-completion method.
C. recognized under both the completed-contract method and the percentage-of-completion method.
D. recognized under the percentage-of-completion method

Ans: D. recognized under the percentage-of-completion method