Luna Tech Solutions, a small IT consulting firm, has seen two years. Traditionally using cash basis accounting, the my growth over its first ecords transactions when cash changes hands. This year, Luna Tech decided to switch to accrual basis accounting to better match its revenue with the expenses incurred in earning it, especially as they start handling larger, multi-month projects. Quiz Information = In the financial year ending December 2023, Luna Tech invoiced $300,000 for services completed but received payment for only $250,000 of those services. The firm also incurred $200,000 in expenses, though it paid only $180,000 by year-end, with the remaining $20,000 payable next year. Required: a. Describe the key differences between cash basis and accrual basis accounting. b. Calculate the reported profit for the year under both cash basis and accrual basis accounting, showing the impact of the accounting method on Luna Tech Solutions' financial statements