I have attached this response in a Word document since table data does not display on this upload site. Balance sheets report revenue in two categories: This work is to be treated as a guideline to assist you with this assignment. Utilizing the hospital financial records from andan evaluation of some of the financial ratios can be made to analyze the current financial trend of PFCH.
The Revenue-Matching Principle Recorded revenue is subject to the revenue-matching principle, which is a requirement of U. At no time is it intended to be a final submission work and I discourage you from using it as such. References 1 Accounting Study Guide: Paid in capital includes revenue from stockholders investments and any other excess investment funds.
Though working as a consultant, most of her career has been spent in corporate finance.
The cash receipt would result in the following transaction: In most cases, revenue is also added to the assets column and recorded as cash. She is pursuing an M. Information on ledgers is transferred to more formal, official financial statements.
The merchandise will not be delivered until April 5.
Points made and topics discussed in this work should be researched further and validated by the student prior to utilizing it in their own work which will be complied for final submission to their schools. The receipt of cash on Feb. On the income statement, sales revenues are listed first, the cost of goods sold from expense matching is subtracted to reach gross profit.
Shareholders, on the other hand, would prefer this ratio to be low as an indicator that more of the To reach net profit, accountants add revenue from sources other than sales, subtract expenses and, finally, subtract taxes.
The following financial ratios are performed:2 In this review, an explanation of the financial ratios for the Patton-Fuller Community Hospital's improvements, the relationship between revenue sources and expenses on Patton-Fuller’s financial performance, the effect of revenue sources on financial reporting at the hospital, and the hospital’s revenues and expenses grouped for planning and.
The effect of revenue sources on financial reporting at the hospital will vary depending on the amount of revenue being generated and the specific source of the revenue.
Revenue sources should be included in financial reporting for the hospital. Recognition and Measurement in Financial Statements of Business Enterprises.
Also, if the for-profit hospital is publicly traded, certain provisions of SEC Staff Accounting Bulletin (SAB) No.Revenue Recognition in Financial Statements, and SAB No.Revenue Recognition, apply. To demonstrate the impact to a company's financial statements from the recognition of revenue, the accrual and cash basis of accounting must be compared.
Assume that on Feb. 28 a company enters a written agreement to sell $25, in specialized merchandise to one of its customers, at which time the entire amount is paid in full. o Relationship between revenue sources and expenses on Patton-Fullerâ??s financial performance Priscilla ï?§ What is the effect of revenue sources on financial reporting at the hospital?
ï?§ How are the hospitalâ??s revenues and expenses grouped for planning and control? What is the effect on revenue sources on financial reporting at the hospital - Answered by a verified Financial Professional.Download