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Which accounting method recognizes revenue based on the percentage of a long-term project's completion?

A) Point of Sale Method
B) Percentage-of-Completion Method
C) Completed Contract Method
D) Cash Method

User Andrina
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1 Answer

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Final answer:

The Percentage-of-Completion Method is the accounting practice of recognizing revenue as a long-term project progresses, reflecting financial performance before the project is fully complete.

Step-by-step explanation:

The accounting method that recognizes revenue based on the percentage of a long-term project's completion is the Percentage-of-Completion Method. Unlike other accounting methods, this approach enables businesses to record revenue and expenses related to long-term projects progressively as the project moves forward. It offers a more accurate reflection of the financial progress and performance of a project before its completion.

User Paulek
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