Final answer:
When revenue or expense has been recognized or incurred but not yet collected or paid, it is normally called accrued revenue or expense.
Step-by-step explanation:
When revenue has been recognized but not yet collected or an expense has been incurred but not yet paid, it is referred to as an "accrued" revenue or expense. Accrual accounting recognizes economic events when they are incurred or earned, regardless of when the cash is exchanged.
In the case of accrued revenue, the income is recognized before the cash is received. Conversely, for accrued expenses, the cost is recognized before the actual payment occurs. These accruals provide a more accurate representation of a company's financial position by reflecting economic activities in the periods in which they are earned or incurred.