Final answer:
Revenue that has been earned but not yet collected is known as accrued revenue.
Step-by-step explanation:
Revenue that has been earned, but not yet collected, is referred to as accrued revenue. This occurs when a company has delivered a product or service, but has not yet received payment, effectively providing goods on credit. Accrued revenue is recorded on the income statement as it is recognized, following the accounting principle of revenue recognition, even though the cash has not yet been received. Therefore, it becomes a part of the company's receivables on the balance sheet.
For example, if a company performs services in December but does not receive payment until January, the revenue for those services would be accrued in December. This is part of the broader category of national income, which includes all income earned such as wages, profits, rent, and profit income.