Chapters 3 & 4 HW (1) Microsoft Word s Review View Grammarly AaBbCcDc AaBbCcDc !!-i-i-i-|||| TNormal IINO Spaci AaBbC AaBbCc A-||||! Heading 1 Heading 2 Paragraph Styles .1.1.2.1.3.1-4.1.5.'-6.1.7.1.8 L i '9.1.10.1.11.1.12 . 1 .13.1.14' ' '15- Question #4-A rental company rents apartment buildings and of course collects rent. Iftenants pay theirrent in advance, the rental agencyrecords this as a liability rather than arent revenue Why is revenue collected in advance treated as a liability? Question #5-Many assets are presented in the financial statements at their historical cost, why does the historical cost principle cause difficulties in financial statement analysis? Question #6-GAAP is considered to be very conservative regarding financial reporting. Explain what this means