Could u explain in details?

E3-19A (book/static) During 2016, Nicholson Network, Inc., which designs network servers, earned revenues of $ 800million. Expenses totaled $ 570 million. Nicholson collected all but $ 21million of the revenuesand paid $ 600 million on its expenses. Requirements Nicholson's top managers are evaluating 2016, and they ask you the following questions:61- Under accrual accounting, what amount of revenue should Nicholson Network report for 2015? How does the revenue principle help to answer thesequestions? b. Under accrual accounting, what amount of total expense shouldNicholson Network report for 2016? Which accounting principle helps to answer thisquestion?c. Redo parts a and b using the cash basis. Explain how the accrual basis differs from the cashbasis. (1. Which financial statement reports revenues and expenses? Which statement reports cashreceipts and cash payments? Requirement 3. Under accrual accounting, what amount of revenue should Nicholson Networkreport for 2016? How does the revenue principle help to answer these questions?