AHIP Exam AHM-520 Topic 1 Question 104 Discussion

Actual exam question for AHIP's AHM-520 exam

Question #: 104
Topic #: 1

The following information was presented on one of the financial statements prepared by the Rouge Health Plan as of December 31, 1998:

Rouge's current ratio at the end of 1998 was approximately equal to:

A0.84

B1.06

C1.19

D1.31

Show Suggested Answer

Suggested Answer: C

by Carry at Dec 06, 2024, 07:06 AM

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Rebbeca

3 months ago

1.19, huh? I bet the accountants at Rouge had a field day crunching those numbers. What, did they use a calculator from the 90s or something?

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Rachael

3 months ago

Hmm, 1.19 current ratio? That's a pretty healthy balance sheet if you ask me. The Rouge team must be doing something right!

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Loren

2 months ago

That's true, it indicates they are in a strong financial position.

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Vi

2 months ago

It shows they have enough current assets to cover their current liabilities.

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Reita

2 months ago

I agree, a current ratio of 1.19 is definitely a good sign for Rouge Health Plan.

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Delbert

3 months ago

I'm going with option C. 1.19 is the correct current ratio based on the information provided in the financial statements.

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Marjory

2 months ago

I'm going with option C. 1.19 is the correct current ratio based on the information provided in the financial statements.

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Gracia

2 months ago

No, I'm pretty sure it's 1.31.

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Estrella

3 months ago

I think it's actually 1.06, not 1.19.

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Vilma

3 months ago

You're right, I didn't consider the quick ratio. It must be 1.06 then.

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Louann

3 months ago

But the quick ratio was 0.84, so it must be lower than 1.19.

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Vilma

4 months ago

I believe it was actually 1.19.

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Miesha

4 months ago

The current ratio of 1.19 seems about right. It's a common and reasonable ratio for a healthcare organization like Rouge Health Plan.

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Samira

2 months ago

Exactly, it's a good indicator of their ability to meet short-term obligations.

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Tammi

2 months ago

Yes, it shows that Rouge Health Plan has enough current assets to cover its current liabilities.

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Hillary

2 months ago

I agree, a current ratio of 1.19 is a good sign of financial health.

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Myra

2 months ago

D) 1.31

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Herminia

3 months ago

C) 1.19

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Hubert

3 months ago

B) 1.06

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Annamaria

3 months ago

A) 0.84

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Louann

4 months ago

I think the current ratio was 1.06.

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