#2 Financial Accounting Concepts Question Title * 1. The statement of financial position is also knows as the: Statement of cash flows Balance sheet Income statement Statement of retained earnings Question Title * 2. A major source of cash from operating activities is: Receipts from investment by owners Receipts from sale of property, plant & equiptment Receipts from providing services Receipts from bank financing Question Title * 3. Assets that are used up as a result of firm's operations are called: Liabilities Expenses Equity Net Income Question Title * 4. When patient accounts receivable are collected: Total assets increase Total assets decrease Total assets are constant Net assets increase Question Title * 5. If a company purchased medical supplies on account (on credit), the accounting equation would show a: Increase in assets and decrease in liabilities. Decrease in assets and increase in liabilities. Increase in assets and increase in liabilities. Decrease in assets and decrease in liablities. Question Title * 6. Which of the following statements about accrual vs. cash basis accounting is correct? An event is recognized when a cash transaction occurs in accrual-basis accounting. An event is recognized when a cash transaction occurs in cash-basis accounting. Most healthcare organizations use cash accounting. Done