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Recognize Revenue on Long-Term Contracts over time if meet-----------

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Final answer:

Revenue on long-term contracts is recognized over time using the Percentage-of-Completion method.

Step-by-step explanation:

Recognizing revenue on long-term contracts over time is important in business and accounting. This method is known as the Percentage-of-Completion method. In this method, revenue is recognized over the course of the contract based on the progress or completion percentage.

For example, let's say a construction company has a contract to build a house for $100,000. If the company completes 50% of the project, they would recognize $50,000 in revenue. This ensures that revenue is accurately matched with the progress of the contract.

This method is used to prevent revenue manipulation and provide a more accurate representation of the company's financial performance.

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