Under the cash basis of accounting, how are revenues and expenses reported? (please circle the letter 1) corresponding to the correct answer) Revenues are reported in the period in which cash is received, and expenses are reported in the period a. in which cash is received Revenues are reported in the period in which they are earned, and expenses are reported in the period b. in which they are incurred in producing revenues. Under the accrual basis of accounting, how are revenues and expenses reported? (please circle the letter 2) corresponding to the correct answer) Revenues are reported in the period in which cash is received, and expenses are reported in the period a. in which cash is received b. Revenues are reported in the period in which they are earned, and expenses are reported in the period in which they are incurred in producing revenues. 3) Which of the following accounts would appear only in an accrual basis accounting system and which could appear in either a cash basis or an accrual basis accounting system? (Please circle the correct answer) fonly in accrual basis occounting/on either a cash or an accrual basis system) (only in accrual basis occounting/on either a cash or an accrual basis system) Capital Stock a. b. Fees earned c. Accounts Payable (only in accrual basis accounting/on either a cash or an accrual basis system) d. Land (only in accrual basis accounting/on either a cash or an accrual basis system) Utilities Expense (only in accrual basis accounting/on either a cash or an accrual basis system) e. 1 Accounts Receivable (only in accrual basis accounting/on either a cash or an accrual basis system) 4) Adjustment or adjusting entries are needed at the end of an accounting period to bring accounts up to date prior to preparing financial statements. TRUE / FALSE (please circle the correct answer) 5) Receiving cash in advance for a service we offer creates a liability in our books, namely in our balance sheet. TURE/ FALSE (please circle the correct answer)