AHIP Exam AHM-520 Topic 4 Question 64 Discussion

Actual exam question for AHIP's AHM-520 exam

Question #: 64
Topic #: 4

The McGwire Health Plan is a for-profit health plan that issues stock. Events that will cause the owners' equity account of McGwire to change include

AMcGwire's retention of net income

BMcGwire's payment of cash dividends on the stock it issued

CMcGwire's purchase of treasury stock

DAll of the above

Show Suggested Answer

Suggested Answer: C

by Gertude at Jan 07, 2023, 04:22 PM

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8 days ago

Ah, the joys of corporate accounting. I feel like I've seen this kind of question before. Let me think... Yep, D is the way to go.

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14 days ago

Wow, this is a tricky one! I'm pretty sure the answer is D, but I'll have to double-check the textbook just to be sure.

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16 days ago

I'm not sure, but I think A) McGwire's retention of net income would definitely impact the owners' equity account.

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19 days ago

I agree with Julio, because all those events would affect the owners' equity account.

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23 days ago

I think the answer is D) All of the above.

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