Indicate whether each of the following applies to financial statements prepared using $($a$)$ the cash basis $($b$)$ the modified cash basis, $($c$)$ both the cash basis and modified cash basis, or $($d$)$ neither the cash basis or modified cash basis $1.$ Never requires recognition of depreciation expense $2.$ Does not require a statement of cash flows $3.$ Reports net income in a required financial statement $4.$ Discloses significant accounting policies in notes accompanying financial statements $5.$ Accounting is supported by authoritative guidance