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In its first year of operations Cull Umber Company recognized $31, 800 in service revenue $6.600 of which was on account and still outstanding at

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In its first year of operations Cull Umber Company recognized $31, 800 in service revenue $6.600 of which was on account and still outstanding at year-end. The remaining $25.200 was the company incurred operating expenses of $17, 100 of these expenses $12, 830 were paid in cash $4, 270 was still on account at year-end. In addition, Calculate the first year's net earrings under the cash basis of accounting and the first year's net earning under the accrual basis of accounting. Which basis of accounting (cash of accrual) provides more useful information for decision makers

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