Final answer:
The principle of recognizing revenue when it is earned, not when received, is the Revenue Recognition Principle. This is fundamental to accrual accounting and provides consistency in financial reporting.
Step-by-step explanation:
The principle of showing revenue when it is earned rather than when the money is actually received is known as the Revenue Recognition Principle. This accounting principle dictates that revenue should be recognized in the accounting period in which it is earned and can be reliably measured, regardless of when the cash is actually received. It is a cornerstone of accrual accounting and ensures that financial statements provide a consistent and accurate representation of a company's financial performance.