Final answer:
The two methods of revenue recognition for long-term construction projects are percentage of completion and completed-contract.
Step-by-step explanation:
The two methods of revenue recognition for long-term construction projects are percentage of completion and completed-contract.
Under the percentage of completion method, revenue is recognized as the project progresses based on the percentage of work completed. This method requires estimating the total revenue and costs of the project.
On the other hand, the completed-contract method recognizes revenue only when the project is completed. No revenue is recognized during the construction period.