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I need a definition in ones own words and a scenario for each

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term Please... Balance sheet Statement of revenue...
I need a definition in ones own words and a scenario for each term Please...
Balance sheet
Statement of revenue and expense
Revenue cycle
Payer mix
Revenue
Submitted: 5 years ago.Category: Finance
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Answered in 11 minutes by:
5/19/2012
Financial Professional: Rakhi Vasavada, Financial and Legal Consultant replied 5 years ago
Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 4,545
Experience: Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
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Dear Friend,

Balance Sheet -- This is a Financial Statement which lists a Firm's Assets and Liabilities and Shareholders Equity at any given point of time, which is usually end of the year.

Statement of Revenue and Expense -- This is a Financial Statement, also known as Profit and Loss Account. This lists ALL expenses done in a year and also records ALL incomes (including Other Income) received in a year and helps to arrive at Net Profit for a given period of time.

Revenue Cycle -- This is a period of time when a Revenue on a sales done is received. It is defined as he process businesses use to describe the financial progression of their accounts receivables from the very beginning, when they first acquire product, if they're product based, until they get paid, if they get paid in full.

Payer Mix -- It is often defined as the mix of entities, other than patients that finance or reimburse the cost of health services. In most cases, this term refers to insurance carriers, other third-party payers, or health plan sponsors (employers or unions).

Revenue -- This is total of proceeds / income that a firm receives during a given specified time from its operations.

I am sure this would help....
Warm Regards,
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Customer reply replied 5 years ago
Can you give me a scenario for each term?
Financial Professional: Rakhi Vasavada, Financial and Legal Consultant replied 5 years ago
Dear Friend,

Do you mean example ?? How do you give example of a Balance sheet ? or P&L Accounts ? You can see them at :

http://www.google.co.in/search?q=profit+and+loss+account+format&hl=en&biw=1366&bih=607&prmd=imvns&tbm=isch&tbo=u&source=univ&sa=X&ei=wk23T96gEofMrQeK2K38Bw&sqi=2&ved=0CGIQsAQ

For Balance Sheet:

http://www.google.co.in/search?hl=en&biw=1366&bih=607&tbm=isch& sa=1&q=balance+sheet+example&oq=balance+sheet&aq=1&aqi=g10&aql=&gs_l=img.3.1.0l10.20684.22749.0.23944.13.11.0.2.2.2.365.1895.0j3j3j2.8.0...0.0.dmV_vHRqOkM

For Revenue, let me try, -- If a firm sells 100 Units of a product for $10 each, its Revenue would be 100*10=$1,000

When a healthcare provider receives payments from Medicare, Medicaid, Insurance providers, for them they are Payer's Mix.

Let me know if it helps
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Customer reply replied 5 years ago

I guess the easiest way to explain would be real like situtions. i.e.









term definition scenario

Controlling



To make sure each department
is following through with the financial plan.



Financial manager
"A" looks at the financial records to make sure that department 10,12, and 13
are following the plan. When compared to earlier reports it shows all
departments but 10 are following the plan. Now Manager "A" must see why they
are not following the plan and see how they can cut costs so they can stay
within the plan. When the plan is followed this will allow for manager "A" to
ensure that resources are being used correctly and allow more daily
interaction. When this step is not understood properly many areas will be
affected like the next step, operations, employment, equipment, and
stakeholders.




Financial Professional: Rakhi Vasavada, Financial and Legal Consultant replied 5 years ago
Dear Friend,

I shall have to opt out and see if other expert can assist you with.

Hope to work with you in future...
Warm Regards,
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Customer reply replied 5 years ago
Relist: Other.
She had to opt out.
Financial Professional: Lindie-mod,
 replied 5 years ago
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Hi, I’m a moderator for this topic. Your Professional has opted out and I wonder whether you’re still waiting for an answer. If you are, please let me know and I will do my best to find another Professional to assist you right away. If not, feel free to let me know and I will cancel this question for you. Thank you!
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Customer reply replied 5 years ago
Still waiting for a answer.
Financial Professional: Lindie-mod,
 replied 5 years ago
Sometimes, finding the right Professional can take a little longer than expected and we thank you greatly for your understanding. We’ll be in touch again shortly
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Customer reply replied 5 years ago

Ok thank you i have a dead line of 5/22/12

Financial Professional: Shawn P Adamo, CPA, Professor, CFP. CGMA, Business Consultant, Professor, PFS I have decades of experience answering these questions. replied 5 years ago
Shawn P Adamo
Shawn P Adamo, CPA, Professor, CFP. CGMA, Business Consultant, Professor, PFS I have decades of experience answering these questions.
Category: Finance
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Experience: CPA, Professor, CFP. CGMA, Business Consultant, Professor, PFS I have decades of experience answering these questions.
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Hello. My specialty is focusing on YOUR Financial needs. Financial Planner/Business Owner for 20 years. CPA,PFS,QFP,GMMA.

I have to teach an ethics class but will have you answers by 4pm.

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Financial Professional: PDtax, CPA, MBA replied 5 years ago
PDtax
PDtax, CPA, MBA
Category: Finance
Satisfied Customers: 4,710
Experience: Tax professional and business consultant for 35 years.
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Hi from just answer. I would like to help. On to scenarios:

 

alance Sheet -- This is a Financial Statement which lists a Firm's Assets and Liabilities and Shareholders Equity at any given point of time, which is usually end of the year.

 

The balance sheet for a subsidiary can be compared to other subsidiaries to insure that suitable returns on asset values (at historical cost) are attained. One can also look at comparative balanc sheets to see if assets are being allocated properly, or if there is excess capacity that should be transferred to other producing units or liquidated.


Statement of Revenue and Expense -- This is a Financial Statement, also known as Profit and Loss Account. This lists ALL expenses done in a year and also records ALL incomes (including Other Income) received in a year and helps to arrive at Net Profit for a given period of time.

 

Comparing subsidiaries on income is the most used bench mark for similar enterprises. Group A with similar business and assets outearning Group B implies better management, operation of and an eye on profitability, etc.

Revenue Cycle -- This is a period of time when a Revenue on a sales done is received. It is defined as he process businesses use to describe the financial progression of their accounts receivables from the very beginning, when they first acquire product, if they're product based, until they get paid, if they get paid in full.

 

This is often measured in inventory turns (that is, how often does the inventory get turned to cash). A higher comparable implies Group A is managing the sale and collection process better. If Group A turns inventory 5 times in a year, and Group B 4, that would imply A will out-earn B. Now a manager should determine why.

Payer Mix -- It is often defined as the mix of entities, other than patients that finance or reimburse the cost of health services. In most cases, this term refers to insurance carriers, other third-party payers, or health plan sponsors (employers or unions).

 

Assuming a diverse payer mix, credit issues, sales discounts, etc. can all be examined if one group outperforms another. If one group serves a select payer mix, its results will be more dependent on one customer, and credit indicators, like Accounts Receivable outstanding, can be monitored and actions taken as appropriate.

Revenue -- This is total of proceeds / income that a firm receives during a given specified time from its operations.

 

Gross revenue is a simple income line item often used to compare subsidiaries. As a bonus base, volume indicator, etc., managers can easily refer to revenues without disclosing too much about a company's more private operations (manager bonuses, officer salaries, etc.). As some of the other indicia imply, comparing revenues can often be overblown when comparing operations, and should be used in concert with other comparable items to insure a usable 'apples to apples' comparison is made by management.

 

If this answers your question, thanks from Just Answer.

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Customer reply replied 5 years ago

That will work for now. Thank you but I was looking for a real life sitution.

 

Financial Professional: PDtax, CPA, MBA replied 5 years ago
I didn't know you needed real life examples. Please advise if you still do, and I will provide.
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Customer reply replied 5 years ago

Yes I still do. Thank you.

Financial Professional: PDtax, CPA, MBA replied 5 years ago
Real life examples:

Balance Sheet -- This is a Financial Statement which lists a Firm's Assets and Liabilities and Shareholders Equity at any given point of time, which is usually end of the year.

In the used car business, there are primarily two types of stores. The low-overhead, prototypical business location with offices attached to a few bays for repair of vehicles. Assets are worked hard, but sales do not compare with nicer, cleaner facilities with larger investments in facility. Nicer stores with larger balance sheet commitments sell and service more cars.

Statement of Revenue and Expense -- This is a Financial Statement, also known as Profit and Loss Account. This lists ALL expenses done in a year and also records ALL incomes (including Other Income) received in a year and helps to arrive at Net Profit for a given period of time.

Using the same industry, comparing similar style operations will often indicate better-run operations, be it lower operating costs, a more attractive product mix, better or more effective advertising and promotion, etc.

Revenue Cycle -- This is a period of time when a Revenue on a sales done is received. It is defined as he process businesses use to describe the financial progression of their accounts receivables from the very beginning, when they first acquire product, if they're product based, until they get paid, if they get paid in full.

Again in the used car business, this can, but is rarely, measured in inventory turns (that is, how often does the inventory get turned to cash). The sale model (cash required, ease of financing, time of year) will be exposed in this analysis. Selling sport utility vehicles in July is difficult, because the wrong products are offered for sale. Inventory turns will expose this type of buying problem. This is exacerbated by many businesses having to have a full lot to entice customers. As my uncle in the car business used to say, "You can't sell bread from an empty shelf". His approach for filling each slot in his lot was flawed, but he never saw it that way.

Payer Mix -- It is often defined as the mix of entities, other than patients that finance or reimburse the cost of health services. In most cases, this term refers to insurance carriers, other third-party payers, or health plan sponsors (employers or unions).

Used car purchasers arrive in various economic strata and are buying for different purposes (best car I can afford with my tax refund, second car, car for student off to school,...). A lot located in an affluent part of town will sell different products and offer different financing for them. The used car lot near the factory will sell and have to finance differently. And the store near the factory will be very dependent on the health of the factory business for its business.

Revenue -- This is total of proceeds / income that a firm receives during a given specified time from its operations.

Gross revenue is a simple income line item often used to compare two enterprises. This is normally a starting point for questions management can address, since the comparison is intended to point out indicators of why one is different from another. Comparing revenues of the suburban used Volvo operation with an advertising budget and perhaps warranty or other support shows the shortcomings in the domestic used car store located near the high school in the center of town. Selling 80 $10,000 used cars is different than selling 200 $4,000 cars, but the gross revenues are precisely the same. The difference is the high-volume operation makes a lot more money. Just comparing sales volume is not enough when comparing operations, and should be used in concert with other comparable items to insure a usable 'apples to apples' comparison is made by management.
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Customer reply replied 5 years ago
may I ask if the definition in in your own words or is it a looked up definition.
Financial Professional: PDtax, CPA, MBA replied 5 years ago
Definitions were provided by the first Expert, and were in her own words. I used them for consistency, but you can tell definitions were her own.
PDtax
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Customer reply replied 5 years ago
I wanted a second opinion. thank you for you time.
Financial Professional: PDtax, CPA, MBA replied 5 years ago
Thanks from Just Answer.
PDtax
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