1)Explain the difference between the accrual basis of accounting and the cash basis of accounting.

2. What are the major reasons for accrual accounting? (Points : 5)

3. How are revenues and expenses defined under accrual accounting? (Points : 5)

4. You have acquired a new CT scanner at a cost of $750,000. You expect to perform 7,000 procedures per year over the estimated 5-year life of the scanner. Assuming no salvage value and an annual increase in replacement cost of 10 percent, what capital charge per procedure should the hospital levy to provide for replacement cost in the second year? (Ignore financing costs or investment income offsets.) (Points : 5)

5. What are the four basic financial statements? (Points : 5)

6. The earnings of a standard (