What type of income shows customer payments that have not yet been applied to an invoice in a cash-basis report?

The correct choice is Unapplied Cash Payment Income because this term specifically refers to payments received from customers that have not yet been associated with any particular invoice. In a cash-basis accounting report, income is recorded when cash is received, but until those payments are applied to invoices, they are categorized as unapplied cash payment income.

This distinction is crucial in ensuring that financial reports accurately reflect the actual income that has been earned but not yet matched with the corresponding invoices. It provides clarity for business owners on how much prepared cash they have on hand that is still awaiting allocation to specific sales transactions. This is particularly important for managing cash flow and understanding customer payments in a timely manner.

Other terms like Deferred Income and Unrecognized Revenue relate to income that has been recorded under different accounting principles, typically involving earned income but not yet recognized in cash-basis accounting. Cash Expenditures refers to cash outflows rather than income, which is not relevant to the question.