Question: During 2018, Evensen Network, Inc., which designs network servers, earned revenues of $780 million. Expenses totaled $590 million. Evensen collected all but $22 million of

During 2018, Evensen Network, Inc., which designs network servers, earned revenues of $780 million. Expenses totaled $590 million. Evensen collected all but $22 million of the revenues and paid $600 million on its expenses.

requirements:

a. Under accrual accounting, what amount of revenue should Evensen report for 2018? How does the revenue principle help to answer this question?

b. under accrual accounting, what amount of total expense should Evensen report for 2018? which accounting principle helps to answer this question?

c. redo parts a and b using the cash basis. explain how the accrual basis differs from the cash basis.

d. which financial statement reports revenue and expenses? which statement reports cash receipts and cash payments?

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