Accrual accounting is recognized when revenues are:

Accrual accounting recognizes revenues when they are earned, regardless of when the cash is actually received. This concept is central to accrual accounting because it matches revenue with the expenses incurred to generate that revenue, providing a more accurate representation of a company’s financial position during a specific time period.

In this accounting method, the key focus is on the completion of the service or the delivery of goods, which signifies that the revenue has been earned. This method contrasts with cash accounting, where revenue is recorded only when cash is received, potentially leading to discrepancies in financial reporting if the timing of cash flows does not align with the actual performance and delivery of services.

The other options pertain to different aspects of revenues or requests for payment rather than the actual recognition of earned income. For instance, revenue is not recognized when merely requested or collected; those actions may occur at different times and do not reflect the true status of revenue earned under accrual accounting.