Deal of The Day! 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 AHM-520 Exam - Topic 1 Question 104 Discussion

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:
C) 1.19
A) 0.84
B) 1.06
D) 1.31

AHIP AHM-520 Exam - Topic 1 Question 104 Discussion

Actual exam question for AHIP's AHM-520 exam
Question #: 104
Topic #: 1
[All AHM-520 Questions]

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:

Show Suggested Answer Hide Answer
Suggested Answer: C

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

Limited Time Offer

25%

Off

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

Contribute your Thoughts:

0/2000 characters
Submit Cancel
Lauran
8 months ago
1.31 is way too optimistic!
upvoted 0 times
...
Maile
8 months ago
Wait, are we sure about that 0.84? Seems low.
upvoted 0 times
...
Jonelle
9 months ago
Definitely agree, 1.19 seems more accurate.
upvoted 0 times
...
Rickie
9 months ago
I thought it would be higher!
upvoted 0 times
...
Oneida
9 months ago
Current ratio was 1.06.
upvoted 0 times
...
Charlie
9 months ago
I’m leaning towards option C, 1.19, but I’m not completely confident. I wish I had more time to double-check my calculations!
upvoted 0 times
...
Audra
10 months ago
I feel like I saw a similar question in our review sessions. I think the answer might be around 1.06, but I could be mixing it up with another example.
upvoted 0 times
...
Cory
10 months ago
I think the current ratio is calculated by dividing current assets by current liabilities. I hope I can remember the exact figures from the statement!
upvoted 0 times
...
Elden
10 months ago
I remember we practiced calculating the current ratio, but I'm not sure if I have the right numbers in my head.
upvoted 0 times
...
Ronnie
10 months ago
Okay, let me think this through. Current assets divided by current liabilities... I think I can do this, but I want to double-check my work to make sure I get the right answer.
upvoted 0 times
...
Evan
10 months ago
No problem, I've got this. The current ratio is a key financial metric, and I'm familiar with how to calculate it. I'll work through the numbers and select the right answer choice.
upvoted 0 times
...
Quiana
10 months ago
Hmm, I'm a little unsure about how to approach this. I know the current ratio is a measure of liquidity, but I'm not totally confident in my ability to calculate it correctly. I'll give it my best shot, but may need to come back to this one.
upvoted 0 times
...
Sharen
10 months ago
This looks straightforward enough. I just need to plug the numbers into the current ratio formula and see which answer choice is closest.
upvoted 0 times
...
Ligia
10 months ago
Okay, let's think this through step-by-step. The current ratio is calculated by dividing current assets by current liabilities. I'll need to use the information provided in the financial statements to calculate the current ratio and see which answer choice matches.
upvoted 0 times
...
Rebbeca
2 years 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?
upvoted 0 times
...
Rachael
2 years 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!
upvoted 0 times
Loren
2 years ago
That's true, it indicates they are in a strong financial position.
upvoted 0 times
...
Vi
2 years ago
It shows they have enough current assets to cover their current liabilities.
upvoted 0 times
...
Reita
2 years ago
I agree, a current ratio of 1.19 is definitely a good sign for Rouge Health Plan.
upvoted 0 times
...
...
Delbert
2 years ago
I'm going with option C. 1.19 is the correct current ratio based on the information provided in the financial statements.
upvoted 0 times
Marjory
2 years ago
I'm going with option C. 1.19 is the correct current ratio based on the information provided in the financial statements.
upvoted 0 times
...
Gracia
2 years ago
No, I'm pretty sure it's 1.31.
upvoted 0 times
...
Estrella
2 years ago
I think it's actually 1.06, not 1.19.
upvoted 0 times
...
...
Vilma
2 years ago
You're right, I didn't consider the quick ratio. It must be 1.06 then.
upvoted 0 times
...
Louann
2 years ago
But the quick ratio was 0.84, so it must be lower than 1.19.
upvoted 0 times
...
Vilma
2 years ago
I believe it was actually 1.19.
upvoted 0 times
...
Miesha
2 years 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.
upvoted 0 times
Samira
2 years ago
Exactly, it's a good indicator of their ability to meet short-term obligations.
upvoted 0 times
...
Tammi
2 years ago
Yes, it shows that Rouge Health Plan has enough current assets to cover its current liabilities.
upvoted 0 times
...
Hillary
2 years ago
I agree, a current ratio of 1.19 is a good sign of financial health.
upvoted 0 times
...
Myra
2 years ago
D) 1.31
upvoted 0 times
...
Herminia
2 years ago
C) 1.19
upvoted 0 times
...
Hubert
2 years ago
B) 1.06
upvoted 0 times
...
Annamaria
2 years ago
A) 0.84
upvoted 0 times
...
...
Louann
2 years ago
I think the current ratio was 1.06.
upvoted 0 times
...

Save Cancel