Analyzing the compositional changes in receivables.

@article{Loree1986AnalyzingTC,
  title={Analyzing the compositional changes in receivables.},
  author={S W Loree},
  journal={Healthcare financial management : journal of the Healthcare Financial Management Association},
  year={1986},
  volume={40 12},
  pages={50-2}
}
  • S W Loree
  • Published 1986 in
    Healthcare financial management : journal of the…
A technique is proposed that applies variance analysis to the aged trial balance to break down the total change in reserve requirement, from one balance sheet date to the next, into a volume variance, a composition variance, and a rate variance. This breakdown allows the accountant or auditor to focus on compositional changes in the trial balance that contribute to otherwise irreconcilable changes in the provision requirement. An assessment of the reasons behind these compositional changes may… CONTINUE READING