1. Alice established Travel Wise in January 2014 but noticed errors in the income statement she prepared for the quarter ending March 31, 2015. She failed to recognize key accounting principles like revenue recognition, matching, and accrual basis of accounting. 2. The consulting accountant will identify the principles Alice missed, such as unearned revenue that was incorrectly included as income. Adjusting entries will be made to record expenses incurred during the period but not paid. 3. It is recommended that Alice attend an accounting refresher course to learn the principles of adjusting and closing entries. This will allow her to correctly prepare financial statements going forward.