1. Explain in layman's terms the difference(s) between the cash basis and the accrual basis of accounting.
2. Explain what is a prepaid expense account and identify in what financial statement would a prepaid account appear in. (Note: Prepaid asset and prepaid expense are the same.)
3. Provide an example of an asset account that requires adjusting entries (AJE) to record Depreciation expense and the purpose of a contra account (Accumulated Depreciation, XXX).
4. Share what you struggled with the most in this chapter, if any.