Building on your second point, kids at that age are also prone to verbal misunderstandings, many of which turn out to be hilarious. So turnabout is fair play.
Many years ago my father-in-law was concerned about the pressure I one of his tires. I told him not to worry because I had a tire gauge in my car and we could check it. My sister-in-law was three or four at the time and approached me wide-eyed and said incredulously "you have a tiger cage in your car? "