Answer ALL the following Marks: (10* 1.5 - 15) 1. When are closing entries done, is it before or after preparing financial statements? Why? 2. What is meant by accrued expenses? Give an example 3. Prepaid tax account has a $7,000 debit balance to start the year. A review of the accounts shows $ 1,500 of unexpired tax remains at year-end. Make the adjusting #tries Date Account title and explanation Dr. Cr. 4. What is the purpose of preparing adjusting entries? How many times in a year are they done? 5. What is the difference between accrual based and cash-based accounting