Free AHIP AHM-520 Exam Questions
Absolute Free AHM-520 Exam Practice for Comprehensive Preparation
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AHIP AHM-520 Exam Questions
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Provided By: AHIP
- Exam: Health Plan Finance and Risk Management (AHM520)
- Certification: AHIP Certification
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Total Questions: 215
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Updated On: Jul 22, 2026
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Rated: 4.9 |
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Online Users: 430
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Question 1
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The Fairway health plan is a for-profit health plan that issues stock. The following data was taken from Fairway's financial statements:
Current assets.....$5,000,000 -
Total assets.....$6,000,000 -
Current liabilities.....$2,500,000
Total liabilities.....$3,600,000
Stockholders' equity.....$2,400,000
Fairway's total revenues for the previous financial period were $7,200,000, and its net income for that period was $180,000.
Assume that the healthcare industry average for the debt-to-equity ratio is 0.90.
The following statement(s) can correctly be made about Fairway's debt to equity ratio:
Answer: B
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The Fairway health plan is a for-profit health plan that issues stock. The following data was taken from Fairway's financial statements:
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Question 2
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With regard to the financial statements prepared by health plans, it can correctly be stated that:
Answer: B
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With regard to the financial statements prepared by health plans, it can correctly be stated that:
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Question 3
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Companies typically produce three types of budgets: operational budgets, cash budgets, and capital budgets. The following statements are about operational budgets. Select the answer choice containing the correct statement.
Answer: C
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Companies typically produce three types of budgets: operational budgets, cash budgets, and capital budgets. The following statements are about operational budgets. Select the answer choice containing the correct statement.
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Question 4
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Under GAAP, three approaches to expense recognition are generally allowed: associating cause and effect, systematic and rational allocation, and immediate recognition.
A health plan most likely would use the approach of systematic and rational allocation in order to:
Answer: D
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Under GAAP, three approaches to expense recognition are generally allowed: associating cause and effect, systematic and rational allocation, and immediate recognition.
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Question 5
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The Jasmine Company, which self-funds the health plan for its 200 employees, has established a 501(c)(9) trust as a means of addressing possible claims fluctuations under the health plan. This plan is not a part of a collective bargaining process.
A potential disadvantage to Jasmine of using a 501(c)(9) trust is that:
Answer: A
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The Jasmine Company, which self-funds the health plan for its 200 employees, has established a 501(c)(9) trust as a means of addressing possible claims fluctuations under the health plan. This plan is not a part of a collective bargaining process.