Before accepting this simple assignment know that I need to check your...

Hi! Thank you for looking. Before accepting this simple assignment know that I need to check your answers against text book answers for accuracy and I have to use a plagiarism checker to check the work. If the answers are cut and paste from textbook responses on sites, I’ll have to turn the work down. Answers need to be in your own words – if you know the material, this should not be a problem and a quick buck. Thanks for listening. DS

Answer each of the following questions in your own words. (Do not plagiarize from the textbook or any other source.) I want to see what you have learned in Chapter 3.

Question 1: You are visiting with a friend, Jerry Bidwell, who wants to start a new business. During discussions on forming the business, Jerry makes this statement:

"Our business will have accounts receivable and accounts payable. It will also acquire a substantial amount of computers and equipment. Will it be acceptable to use the cash basis of accounting?"

Prepare a response for Jerry.
Answer here:

Question 2: "Adjusting entries are required by the cost principle of accounting." Do you agree with this statement? Explain fully.

Question 3: "Depreciation is a valuation process that results in the reporting of the fair value of the asset." Do you agree with this statement? Explain fully.

Question 4: Distinguish between the two categories of adjusting entries and identify the types of adjustments applicable to each category. Explain fully.

Questions 5: Will an adjusting entry ever affect the asset account called "Cash?" Why or why not? Explain fully.