Under accrual accounting, what does the reported revenue on the income statement represent?

The reported revenue on the income statement under accrual accounting represents all earned income, regardless of whether cash has been collected. This is a fundamental principle of accrual accounting, which recognizes revenue when it is earned and realizable, rather than when cash is actually received.

Under accrual accounting, if a service is provided or a product is delivered, the revenue can be recognized in the financial statements at that time, even if the payment from the customer has not yet been received. This approach provides a more accurate picture of a company's financial performance during a specific period, as it reflects the economic events that have occurred, not just the cash transactions.

Other options do not align with this principle. Actual cash collections during the period would represent cash basis accounting, which only recognizes income when cash is received. Estimates of future cash collections and cash collections combined with earned income would not accurately reflect the revenue that has been recognized under the accrual basis during the reporting period.