(-01 xercise 4 :5 n its first year of operations, Sandhill Co. recognized $33,900 in service revenue, $6,200 af which was on account and still outstanding at year end. The remaining $27,700 wa eceived in cash from customers. he company incurred operating expenses of $16,600. Of these expenses, $12,940 were paid in cash; $3,660 was stll owed on account at year-end. In addition, Sandhll 2,670 for insurance coverage that would not be used until the second year of operations. a) Calculate the first year's net earnings under the cash basis of accounting, and the first year's net earnings under the acorual basis of accounting Cash Basis Accrual Basis Net Income s (b) Which basis of accounting (cash or accrual) provides more useful information for decision-makers? INK TO TEXI y accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Question Attempts: 0 of 3 used SAVE FOR LATER SUBMIE A Uoe