politics of the united states finance In its first year of operations, Ramirez Company recognized $28,000 in service revenue,$6,000 of which was on account and still outstanding at year-end. The remaining $22,000 was received in cash from customers.
The company incurred operating expenses of$15,800. Of these expenses, $12,000 were
paid in cash;$3,800 was still owed on account at year-end. In addition, Ramirez prepaid
$2,400 for insurance coverage that would not be used until the second year of operations.
(b) Which basis of accounting (cash or accrual) provides more useful information for decision-makers? 10th EditionElliot Aronson, Robin M. Akert, Samuel R. Sommers, Timothy D. Wilson 7th EditionJames Fitzsimmons, Mona Fitzsimmons 12th EditionBarry Render, Chuck Munson, Jay Heizer 15th EditionJohn David Jackson, Patricia Meglich, Robert Mathis, Sean Valentine