During 2024, Fun Tuition Center, which provides creative tuition services for kids, earned revenues of $400,000, but only collected $380,000. Expenses incurred during the year totaled $280,000 and the business only paid $190,000.

Answer the following questions about the correct way to account for revenue using either the cash basis or the accrual basis of accounting system as required:
a. Under accrual basis, what amount of revenue should Fun Tuition Center report for 2024? How does the revenue principle help to answer this question?
b. Under cash basis, what amount of revenue should Fun Tuition Center report for 2024?
c. Under accrual basis, what should be the total expense reported by Fun Tuition Center for 2024? Which accounting principles help to answer this question?
d. Under cash basis, what should be the total expense reported by Fun Tuition Center for 2024?
e. Which financial statement reports revenue and expenses? Which statement reports cash receipts and cash payments?