The Balance Sheet shows your Assets (what you own) and your Liabilities (what you owe). What's most important is the timing with which you recognize these items. Accrual accounting means you should recognize revenue and expense together, when the patient care happens. the money you are owed for services that hasn't yet been paid is an example of this principle, and is called Depreciation Accounts Receivable Accounts Payable Equity Horizontal Analysis can be used to see your Income Statement trend year to year. If you use this technique for your company's last two years you observe Revenue increasing 12.5% and Expenses increasing 8.2%. Which of the following statements are likely to be true? Your Net Income probably increased frtm the prior year You became more cost-efficient relative to your Revenue Your were experiencing a "margin squeeze" Both b and c are likely true Both a and b are likely true