Which statements correctly explain price floors and price ceilings? Check all that apply. Ineffective price floors tend to be too high.
Ineffective price ceilings tend to be too low,
Price floors help producers by raising prices.
Price ceilings help consumers by lowering prices.
Effective price floors are set above equilibrium.
Effective price ceilings are set below equilibrium.

In its first year of operations, sunland company recognized $30,000 in service revenue, $8,100 of which was on account and still outstanding at year-end. the remaining $21,900 was received in cash from customers. the company incurred operating expenses of $18,600. of these expenses, $12,880 were paid in cash; $5,720 was still owed on account at year-end. in addition, sunland prepaid $3,270 for insurance coverage that would not be used until the second year of operations. (a) calculate the first year's net earnings under the cash basis of accounting, and the first year's net earnings under the accrual basis of accounting.