Case Study: Hill-Rom

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Per discussion with Cathy Nolan, ASR notes that the nature of this account is different compared to the other tested pre-paid accounts. The third party contracter bills Hill-Rom as they complete work on the hospital, resulting in an increase in the pre-paid account. This process continues until the installation process in the hospital is complete. Once the process is complete Hill-Rom will bill the customer their agreed upon amount for the installation. This transaction results in the full expense to the accumulated prepaid amount and recognition of revenue from the hospital. Therefore there is no expense to the account until the customer has been billed. In the above selections the customer has yet to be billed deeming section c) iii) of

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