Final answer:
The statement is true; revenue is recognized based on the percentage-of-completion method in long-term service contracts involving more than one act which provides a real-time reflection of the company's earnings and performance.
Step-by-step explanation:
When a long-term service contract requires similar services to be performed in more than one act, revenue is typically recognized based on the percentage-of-completion method. This statement is True. The percentage-of-completion method allows revenue to be recognized as related services are performed, reflecting the progress made towards the completion of the contract. This method provides a more accurate reflection of the company's performance and earnings over the course of the contract. This method is contrasted with the completed-contract method, where revenue is recognized only when the contract is fully completed.