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AHIP AHM-520 Exam - Topic 6 Question 131 Discussion

The Caribou health plan is a for-profit organization. The financial statements that Caribou prepares include balance sheets, income statements, and cash flow statements. To prepare its cash flow statement, Caribou begins with the net income figure as reported on its income statement and then reconciles this amount to operating cash flows through a series of adjustments. Changes in Caribou's cash flow occur as a result of the health plan's operating activities, investing activities, and financing activities.Caribou is engaged in an operating activity when it
D) Pays expenses associated with the healthcare services provided to its members
A) Purchases or sells assets of the health plan
B) Disposes of a subsidiary
C) Repays funds loaned by its creditors

AHIP AHM-520 Exam - Topic 6 Question 131 Discussion

Actual exam question for AHIP's AHM-520 exam
Question #: 131
Topic #: 6
[All AHM-520 Questions]

The Caribou health plan is a for-profit organization. The financial statements that Caribou prepares include balance sheets, income statements, and cash flow statements. To prepare its cash flow statement, Caribou begins with the net income figure as reported on its income statement and then reconciles this amount to operating cash flows through a series of adjustments. Changes in Caribou's cash flow occur as a result of the health plan's operating activities, investing activities, and financing activities.

Caribou is engaged in an operating activity when it

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Suggested Answer: D

by Francis at Aug 12, 2026, 10:15 AM

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Terrilyn
4 days ago
Just to clarify, A and B are more about investing and financing, right?
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Ben
9 days ago
Wait, are we sure that's all there is to operating activities?
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Leota
14 days ago
Totally agree, D is definitely the right choice!
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Kristian
19 days ago
Operating activities include paying expenses for healthcare services.
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Latrice
24 days ago
I thought investing activities were more about buying and selling assets, but I could be mixing things up.
upvoted 0 times
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Han
30 days ago
This question reminds me of a practice quiz we did where we had to classify different cash flow activities.
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Timothy
1 month ago
I'm not entirely sure, but I feel like paying expenses for healthcare services is definitely an operating activity.
upvoted 0 times
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Pok
1 month ago
I remember we discussed operating activities in class, and I think they mainly involve day-to-day operations.
upvoted 0 times
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