• What is the difference between the cash basis and the accrual basis of accounting? (Use your own words)
• What is a calendar year? What is a fiscal year?
• What type of business would choose a fiscal year (that corresponds to its natural business year) instead of a calendar year? Give a specific example.
• Explain in your own words what a prepaid expense is. Do you personally have any prepaid expenses? If so, what is the expense and explain why you consider it prepaid. If not, what is one that you could potentially have in the future?