During 2018, Barron Network, Inc., which designs network servers, eamed revenues of $880 million. Expenses totaled $570 million. Barron collected all but $29 million of the revenues and paid $580 million on its expenses. Read the requirements CE Requirement a. Under accrual accounting, what amount of revenue should Barron report for 2018? How does the revenue principle help to answer this question? The amount of revenue that should be reported for the year is $ 880 million How does the revenue principle help to answer this question? The revenue principle says record revenue when it has been eamed regardless of when cash is collected Therefore, the amount revenue reported is what Barron earned Requirement b. Under accrual accounting, what amount of total expense should Barron report for 2018? Which accounting principle helps to answer this question? The amount of total expense that should be reported for the year is $ 570 million Which accounting principle helps to answer this question? The expense recognition principle recognizes expenses in the same period in which any related revenues are earned. Requirement c. Redo parts a and busing the cash basis. Explain how the accrual basis differs from the cash basis. Revenue: $ 851 million 580 million Total expense: S Explain how the accrual basis differs from the cash basis. The accrual basis measures revenues and expenses V while the cash basis measures revenues and expenses as eamed as incurred collected in cash paid in cash