In its first year of operations, Sandhill Co. recognized $ 27,440 in service revenue, $ 5,880 of which was on account and still outstanding at year-end. The remaining $ 21,560 was received in cash from customers. The company incurred operating expenses of $ 15,484. Of these expenses, $11.760 were paid in cash: $3,724 was still owed on account at year-end. In addition, Sandhill prepaid $ 2,352 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 calculate the first year's net earnings under the accrual basis of accounting. Accrual Basis Cash Basis Net Income (b) Which basis of accounting (cash or accrual) provides more useful information for decision-makers? Accrual basis Cash basis Media Attempts of used SA