5) If a company purchased medical supplies on account (on credit), the accounting equation would show a: Increase in assets and decrease in a. liabilities Decrease in assets and increase in b. liabilities Increase in assets and increase in c. liabilities Decrease in assets and decrease in d. liabilities. 6) Which of the following statements about accrual vs. cash basis accounting is correct? An event is recognized when a cash transaction occurs in a. An event is recognized when a cash transaction occurs in cash-basis Most healthcare use cash c. Cash
5) If a company purchased medical supplies on account (on credit), the accounting equation would show a: a. Increase in assets and decrease in liabilities b. Decrease in assets and increase in liabilities c. Increase in assets and increase in liabilities d. Decrease in assets and decrease in liabilities. 6) Which of the following statements about accrual vs. cash basis accounting is correct? a. An event is recognized when a cash transaction occurs in An event is recognized when a cash transaction occurs in cash-basis c. Most healthcare use cash Cash
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