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The following information was presented on one of the financial statements prepared by the Rouge health plan as of December 31, 1998: When calculating its cash-to-claims payable ratio, Rouge would correctly divide its:
Suggested Answer: B
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12 comments · newest first
JA
Jamal
12 months ago
C is totally wrong, it’s all about the ratio!
MA
Maynard
1 year ago
Wait, are we really counting IBNR? Seems off.
ST
Stefany
1 year ago
I agree with B, that makes the most sense.
WA
Wai
1 year ago
I thought it was A, just reported claims?
AR
Arlene
1 year ago
Definitely B, you need to include IBNR for accuracy.
RE
Remona
1 year ago
I think we definitely divide cash by reported claims only, but I’m not 100% confident. It seems like IBNR might complicate things unnecessarily.
KR
Kristin
1 year ago
I’m a bit confused about whether we should just use reported claims or include IBNR too. I feel like I need to double-check my notes on this.
KR
Kristeen
1 year ago
I remember a similar question where we had to consider IBNR, so I feel like option B makes the most sense here.
KA
Karan
1 year ago
I think the cash-to-claims payable ratio should include both reported claims and IBNR, but I'm not entirely sure if that's how we calculated it in practice.
DE
Dean
1 year ago
Hmm, I'm not too familiar with masking policies in SQL. I'll have to think this one through carefully.
MA
Malcom
1 year ago
This is a good test of my knowledge on financial statements. I'll need to apply my understanding of the definitions and classifications to determine which option is not a non-current asset. I'm feeling pretty confident I can figure this out.
DA
Darrin
1 year ago
Okay, let me review the options again. Picoseconds, microseconds, nanoseconds, or milliseconds? I think nanoseconds sounds right, but I'll double-check my notes to be sure.