Question

E3-18A (book/static) During 2018, Aia Network, in which design netwerk van comed revenues of $20 min. Expertised 30 milon. Able colecind i 30 milion of the revenues and paid $10 dien onts per Question Help Requirement ander word counting, what amount we should be report for 2016? How does the revenue principle oplo www this union? The amount of were that should be reported to the year is Pequirements Under al conting what amount of revenue should Ablo report for 2018? How does the menu principle help tower the question Under woning what amount of expense should be report for 2017 Which is to www this en . Redo perts a and bring the cash basis. Bagian how the basis for from this Which narcial statement reports revenues and expenses? Whichten reports cars and cash payment? Print Done Enter any number the cand then click Checker 6 ring CA Check A

Answer 1

Revenue	820	m
Expense	510	m
Cash Receipt	800	m	(820-20)
Cash Paid	410	m
a) Accrual accounting:
Revenue, 2018	820	m
Rule/Principle: Nominal Accounts: Credit all Revenues/Gains made during the year.
b) Accrual accounting:
Expenses, 2018	510	m
Rule/Principle: Nominal Accounts: Debit all Expenses/Losses made during the year.
c) Cash Accounting:
Revenue, 2018	800	m
Expenses, 2018	410	m
Rule/Principle: Book revenues towards cash receipts of revenues and book expenses
which are paid.
Difference between the Accrual and Cash Accounting is that under accrual, the
actual revenues and expenses are reported whether cash received and payment
takens place or not, but under cash accounting, only cash received towards revenues
are reported as revenues and cash paid towards expenses are reported as expenses.
d) Income Statement reports revenues and expenses. Cash Flow Statement reports
cash receipts and cash payments.