An advertising agency receives a $10,000 cash deposit from a client on February 15th for an advertising campaign which will begin in March. Which of the following statements is true for the agency (which uses accrual accounting)?

1. A liability will be reported on the balance sheet at the end of February
2. A prepaid asset will be reported on the balance sheet at the end of February
3. Revenue will be recorded and reported on the income statement for February
4. Cash from operations will be reported on the statement of cash flows in March
5. All of the above are true