AHIP Exam AHM-520 Topic 5 Question 65 Discussion

Actual exam question for AHIP's AHM-520 exam

Question #: 65
Topic #: 5

The core of a health plan's strategic financial plan is the development of its pro forma financial statements. The following statements are about these pro forma financial statements. Select the answer choice containing the correct statement.

AA health plan's pro forma financial statements forecast what the plan's financial condition will be at the end of an accounting period, without regard to whether the health plan achieves its objectives.

BForecasting the balance sheet is more critical to the health plan than forecasting either the cash flow statement or the income statement, because the balance sheet drives the development of the other two statements.

CIn order to avoid allowing the desired financial results to drive the assumptions used in developing the pro forma income statement, a health plan should avoid linking these assumptions to the health plan's overall strategic plan.

DA health plan can use its pro forma cash flow statement to calculate the net present value of the health plan's strategic plan.

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Suggested Answer: A

by Evangelina at Feb 05, 2023, 06:37 AM

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