1. One of your fellow students makes the following statement: "You can easily tell whether a company is using the cash or accrual basis of accounting. When an amount is paid for future rent or insurance services, a firm that is using the cash basis debits an expense account while a firm that is using the accrual basis debits an asset account." Required: Is the student correct? Analyze your answer with suitable examples. 2. Some assets are converted into expenses as they expire and some liabilities become revenues as they are earned. Required: Give examples of asset and liability accounts for which this statement is true. Justify your