BlackFriday 2024! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

AHIP Exam AHM-520 Topic 6 Question 97 Discussion

Actual exam question for AHIP's AHM-520 exam
Question #: 97
Topic #: 6
[All AHM-520 Questions]

All publicly traded health plans in the United States are required to prepare financial statements for use by their external users in accordance with generally accepted accounting principles (GAAP). In addition, health insurers and health plans that fall under the jurisdiction of state insurance departments are required by law to prepare certain financial statements in accordance with statutory accounting practices (SAP). In a comparison of GAAP to SAP, it is correct to say that:

Show Suggested Answer Hide Answer
Suggested Answer: B

by Bulah at Sep 13, 2024, 02:00 PM

Limited Time Offer

25%

Off

Get Premium AHM-520 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel
Benton
28 days ago
If GAAP and SAP were superheroes, GAAP would be 'Generally Accepted Accounting Principles-Man' and SAP would be 'Statutory Accounting Practices-Woman'. Together, they'd fight financial fraud and balance the books!
upvoted 0 times
Lenny
6 days ago
A) GAAP is established and promoted by the National Association of Insurance Commissioners (NAIC), whereas SAP is established and promoted by the Financial Accounting Standards Board (FASB)
upvoted 0 times
...
...
Whitley
1 months ago
I heard the FASB is actually run by a bunch of accountants who moonlight as magicians. They use their magical powers to make profits disappear!
upvoted 0 times
Arthur
2 days ago
Oh really? I thought the FASB was all about magic tricks. So, what's the deal with SAP then?
upvoted 0 times
...
Ria
16 days ago
That's not true, the FASB is actually responsible for establishing and promoting GAAP, not making profits disappear.
upvoted 0 times
...
...
Luann
1 months ago
Hmm, I'm torn between B and C. Maybe I should just flip a coin and hope for the best. Or maybe I'll go with the answer that sounds the most 'statutory'.
upvoted 0 times
...
Mabel
1 months ago
I'm going with C. GAAP has a single method for valuing assets, while SAP offers more flexibility in asset valuation.
upvoted 0 times
Kris
17 days ago
I'm not sure about this one, but B makes sense to me. GAAP focusing on the going-concern concept and SAP on liquidation value.
upvoted 0 times
...
Mozell
19 days ago
I think I'll go with D. GAAP is known for being conservative in nature, so that seems like the right answer.
upvoted 0 times
...
Isidra
23 days ago
I agree with you, C seems to be the correct choice. SAP does offer more than one method for valuing assets.
upvoted 0 times
...
...
Jettie
1 months ago
D seems like the right choice to me. GAAP emphasizes the principle of conservatism, but SAP is generally more liberal in its approach.
upvoted 0 times
Truman
5 days ago
So, it's important for health plans to understand the differences between GAAP and SAP when preparing financial statements.
upvoted 0 times
...
Keneth
13 days ago
SAP, on the other hand, is generally more liberal in nature.
upvoted 0 times
...
Elke
1 months ago
That's true. GAAP tends to be more cautious in its approach.
upvoted 0 times
...
Viola
1 months ago
I agree, D is the correct choice. GAAP is more conservative compared to SAP.
upvoted 0 times
...
...
Jacquline
2 months ago
I'm not sure, but I think the going-concern concept is important in GAAP
upvoted 0 times
...
Chaya
2 months ago
I think B is the correct answer. GAAP focuses on the going-concern concept, while SAP is more concerned with the liquidation value of the insurer.
upvoted 0 times
Azalee
22 days ago
It's important to understand the differences between GAAP and SAP for financial reporting purposes.
upvoted 0 times
...
Glenn
27 days ago
That's true, GAAP looks at the going-concern concept while SAP looks at liquidation value.
upvoted 0 times
...
Melodie
1 months ago
I agree, B is the correct answer. GAAP and SAP have different focuses.
upvoted 0 times
...
...
Breana
2 months ago
I agree with Leeann, GAAP and SAP have different governing bodies
upvoted 0 times
...
Leeann
2 months ago
I think the correct answer is A) GAAP is established and promoted by the National Association of Insurance Commissioners (NAIC), whereas SAP is established and promoted by the Financial Accounting Standards Board (FASB)
upvoted 0 times
...

Save Cancel