Use the facts in the question below to answer the questions

JRCE runs a community job preparedness course. The goal of the course is to: 1) raise finances for the non-profit and 2) to develop capacity among aspiring job seekers.

A nonprofit, JRCE, has been using a cash accounting system, but its director thinks it should move to accrual budgeting and accounting. They ask you to assess what a movement to accrual budgeting will mean for their job preparedness class. In 2019, JRCE provided job preparedness classes to 2,500 individuals. In the same year, the program produced 5000 manuals at a cost of $25 each, and it used half of these manuals for the participants in the course. Each participant paid a $50 class fee. JRCE collected 80 percent of the fees owed for the course during FY 2019 and the remaining 20 percent in the first half of FY 2020. In addition, JRCE contracted with a trainer to provide the training, and paid the full costs of this contract ($20,000) in FY 2019.

1. On an accrual basis, what was the net cost or revenue associated with the gardening classes? Show work and explain

2. What was the net cost or revenue in FY 2019, on a cash basis? Show work and explain

3. Which of the following are true of accrual budgeting or accounting?
4. 1. In accrual accounting fees for services are accounted at the time that fee-generating services are provided.
   2. In Accrual accounting, fees for services are accounted at the time that revenues are received.
   3. In accrual accounting, the costs of resources are accounted at the time that the resources are used.
   4. A and C
   5. B and C