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Sharpen Your Knowledge with AHIP (AHM-520) Certification Sample Questions
CertsTime has provided you with a sample question set to elevate your knowledge about the AHIP Health Plan Finance and Risk Management exam. With these updated sample questions, you can become quite familiar with the difficulty level and format of the real AHM-520 certification test. Try our sample AHIP Health Plan Finance and Risk Management certification practice exam to get a feel for the real exam environment. Our sample practice exam gives you a sense of reality and an idea of the questions on the actual AHIP Managed Healthcare Professional certification exam.
Our sample questions are similar to the Real AHIP FAHM AHM-520 exam questions. The premium AHIP Health Plan Finance and Risk Management certification practice exam gives you a golden opportunity to evaluate and strengthen your preparation with real-time scenario-based questions. Plus, by practicing real-time scenario-based questions, you will run into a variety of challenges that will push you to enhance your knowledge and skills.
AHIP AHM-520 Sample Questions:
The Jade Health Plan used a profitability index (PI) to rank the following capital proposals:
Proposal PI
A0.45
B1.05
This information indicates that, of these two projects, Jade would most likely select:
The Proform Health Plan uses agents to market its small group business. Proform capitalizes the commission expense relating to this line of business by spreading the commissions over the premium-paying period of the healthcare coverage. This approach to expense recognition is known as:
The Montvale Health Plan purchased a piece of real estate 20 years ago for $40,000. It recently sold the real estate for $80,000 and reported a capital gain of $40,000 on this sale. Even though the purchasing power of the dollar declined by half during this period and Montvale realized no actual gain in purchasing power, Montvale recorded in its accounting records the $40,000 gain from this sale. This situation best illustrates the accounting concept known as the:
The Wallaby Health Plan purchased an asset two years ago for $50,000. At the time of purchase, the asset had an appraised value of $52,000. The asset carries a value on Wallaby's general ledger of $47,000, and its current market value is $80,000. According to the cost concept, Wallaby would report on its financial statements a value for this asset equal to:
The following transactions occurred at the Lane Health Plan:
-Transaction 1 --- Lane recorded a $25,000 premium prior to receiving the payment -Transaction 2 --- Lane purchased $500 in office expenses on account, but did not record the expense until it received the bill a month later -Transaction 3 --- Fire destroyed one of Lane's facilities; Lane waited until the facility was rebuilt before assessing and recording the amount of loss -Transaction 4 --- Lane sold an investment on which it realized a $14,000 gain; Lane recorded the gain only after the sale was completed.
Of these transactions, the one that is consistent with the accounting principle of conservatism is:
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