During 2020, Dish Networks Inc. earned revenues of \(\$ 700\) million. Expenses totalled \(\$ 540\) million. Dish collected all but \(\$ 20\) million of the revenues and paid \(\$ 530\) million on its expenses. Dish's top managers are evaluating the year, and they ask you the following questions:

a. Under accrual accounting, what amount of revenue should the company report for 2020? Is the \(\$ 700\) million revenue earned, or is it the amount of cash actually collected?

b. Under accrual accounting, what amount of total expense should Dish report for the year\(\$ 540\) million or \(\$ 530\) million?

c. Which financial statement reports revenues and expenses? Which statement reports cash receipts and cash payments?