What is 'earned revenue'?

Earned revenue refers to income that a company has recognized after completing the services or delivering goods associated with that revenue. This recognition is a critical concept in accounting as it aligns with the revenue recognition principle, which states that revenue should be recognized in the financial statements when it is earned, regardless of when the cash is received.

In the context of option B, this means that once a service has been performed and the company has fulfilled its obligations to the customer, it can report that revenue on its financial statements. This reflects an accurate picture of the entity's earnings during a particular accounting period.

The other options refer to different scenarios involving revenue but do not capture the essence of 'earned revenue.' For instance, revenue recognized before performing services deals with deferred revenue, while revenue received for future services pertains to unearned revenue, which is not recognized until the services are provided. Lastly, revenue that is not yet recognized suggests a timing difference but does not align with the concept of revenue having been earned, as it has not yet been recorded under either cash or accrual accounting.