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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:

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Suggested Answer: C

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

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Lauran
4 months ago
1.31 is way too optimistic!
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Maile
4 months ago
Wait, are we sure about that 0.84? Seems low.
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Jonelle
4 months ago
Definitely agree, 1.19 seems more accurate.
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Rickie
4 months ago
I thought it would be higher!
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Oneida
5 months ago
Current ratio was 1.06.
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Charlie
5 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!
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Audra
5 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.
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Cory
5 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!
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Elden
5 months ago
I remember we practiced calculating the current ratio, but I'm not sure if I have the right numbers in my head.
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Ronnie
5 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.
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Evan
5 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.
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Quiana
5 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.
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Sharen
5 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.
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Ligia
6 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.
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Rebbeca
1 year 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
1 year 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
1 year ago
That's true, it indicates they are in a strong financial position.
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Vi
1 year ago
It shows they have enough current assets to cover their current liabilities.
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Reita
1 year ago
I agree, a current ratio of 1.19 is definitely a good sign for Rouge Health Plan.
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Delbert
1 year 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
1 year 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
1 year ago
No, I'm pretty sure it's 1.31.
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Estrella
1 year ago
I think it's actually 1.06, not 1.19.
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Vilma
1 year ago
You're right, I didn't consider the quick ratio. It must be 1.06 then.
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Louann
1 year ago
But the quick ratio was 0.84, so it must be lower than 1.19.
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Vilma
1 year ago
I believe it was actually 1.19.
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Miesha
1 year 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
1 year ago
Exactly, it's a good indicator of their ability to meet short-term obligations.
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Tammi
1 year ago
Yes, it shows that Rouge Health Plan has enough current assets to cover its current liabilities.
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Hillary
1 year ago
I agree, a current ratio of 1.19 is a good sign of financial health.
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Myra
1 year ago
D) 1.31
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Herminia
1 year ago
C) 1.19
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Hubert
1 year ago
B) 1.06
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Annamaria
1 year ago
A) 0.84
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Louann
1 year ago
I think the current ratio was 1.06.
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