Response to the following questions:
1. What is the difference between the cash basis and the accrual basis of accounting?
2. Why is the accrual basis of accounting generally preferred over the cash basis?
3. What type of business is most likely to select a fiscal year that corresponds to its natural business year instead of the calendar year?
4. What accounts are taken from the adjusted trial balance to prepare an income statement?
5. In preparing financial statements from an adjusted trial balance, what statement is usually prepared second?