During the year ended December 31, 2015, Oakwood Rehabilitation Hospital spent $50,000 cash on medical supplies. Oakwood's income statement for the same years shows supplies expense for $35,000. Which of the following bases of accounting does Oakwood most likely use?
A. Cash basis accounting
B. Partial cash basis accounting
C. Modified generally accepted accounting principles
D. Accrual basis accounting
E. Cost accounting
Ans: D. Accrual basis accounting
Business
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