Which of the following is a valid argument for separate accounting principles for proprietary activities? two separate measurement focuses and bases for accounting within the same set of financial statements are confusing. there are no clear-cut distinctions between business and non-business activities. the measurement focus on all economic resources is more consistent with the gasb’s objectives that financial reporting should provide information to determine whether current-year revenues were sufficient to pay for current-year services. surveys of statement users indicate that information on depreciation is not of high priority to governmental decision makers.

Listed below are several transactions that took place during the first two years of operations for the law firm of pete, pete, and roy.year 1 year 2amounts billed to clients for services rendered $ 170,000 $ 220,000 cash collected from clients 160,000 190,000 cash disbursements salaries paid to employees for services rendered during the year 90,000 100,000 utilities 30,000 40,000 purchase of insurance policy 60,000 0 in addition, you learn that the company incurred utility costs of $35,000 in year 1, that there were no liabilities at the end of year 2, no anticipated bad debts on receivables, and that the insurance policy covers a three-year period.required: 1. & 3. calculate the net operating cash flow for years 1 and 2 and determine the amount of receivables from clients that the company would show in its year 1 and year 2 balance sheets prepared according to the accrual accounting model.2. prepare an income statement for each year according to the accrual accounting model.