A fellow student makes the following statement: "You can easily tell whether a company is using the cash or accrual basis of accounting. When an amount is paid for the future rent or insurance services, a firm that is using the cash basis debits an expense account while a firm that is using the accrual basis debits an asset account." Is this student correct? You notice that the Supplies on Hand account has a debit balance of $2.700 at the end of the accounting period. How would you determine the extent to which this account needs adjustment? Give an example of a journal entry for the following: . An equal increase of both an asset and a revenue