Final answer:
Recognizing revenue before cash flow is an example of an accrual adjusting entry, adhering to the revenue recognition principle. (Option C).
Step-by-step explanation:
Recognizing revenue before cash flow is an example of c) an accrual adjusting entry.
Accrual accounting requires companies to record revenues and expenses when they are earned or incurred, regardless of when the cash transaction occurs.
This type of adjusting entry ensures that revenues are recognized in the period they are earned, which adheres to the revenue recognition principle of accounting.
It stands in contrast to cash basis accounting, where revenue is only recorded when cash is received.