What method recognizes income when the employer has done the work, yet has not received the income?

The accrual method of accounting recognizes income when it is earned, regardless of when the payment is actually received. In this context, the income is recognized at the point when the employer has completed the work, indicating that the revenue has been earned. This method aligns with the principle of matching revenues with the expenses incurred to generate them within the same period, providing a more accurate picture of a company's financial performance.

Under the accrual method, the employer records accounts receivable to reflect income that is owed but has not yet been collected. This contrasts with the cash method of accounting, which only recognizes income when cash is physically received, potentially distorting the true financial status if payments lag behind work performed. The other terms, appreciation and depreciation, refer to changes in the value of assets over time, but they do not pertain to income recognition in accounting practices.