QS 3-2 Computing accrual and cash income LO C1 In its first year of operations, Roma Company reports the following Earned revenues of $46,000 ($38,000 cash received from customers) Incurred expenses of $26,000 ($20,600 cash paid toward them) Prepaid $7,000 cash for costs that will not be expensed until next year Compute the company's first-year net income under both the cash basis and the accrual ba Cash Basis Accrual Basis $ 38,000 $ 46,000 Revenues Expenses Net Income Prey 1 of 13 Next archi o DOLL