Return to question item 1 item 1 in its first year of operations, roma company reports the following. earned revenues of $65,000 ($57,000 cash received from customers). incurred expenses of $35,500 ($27,250 cash paid toward them). prepaid $11,750 cash for costs that will not be expensed until next year. compute the company's first year net-income under both the cash basis and the accrual basis of accounting

Cash basis accounting  (record accounting transactions only when the corresponding cash is received or payments are made)

Revenues (cash receipts)          $57,000

Expenses ($27,250+$11,750)    $39,000

Net income                                 $18,000

Accrual basis accounting  (record accounting transactions for revenue when earned and expenses when incurred)

Revenues (earned)                     $65,000

Expenses (incurred)                   $35,500

Net Income                                $29,500

answer; i believe its (d) intrinsic;