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Question 4/129
The accounting department of the Enterprise health plan adheres to the following policies:
Policy A-Report gains only after they actually occur
Policy B-Report losses immediately
Policy C-Record expenses only when they are certain
Policy D-Record revenues only when they are certain
Of these Enterprise policies, the ones that are consistent with the accounting principle of conservatism are Policies
Policy A-Report gains only after they actually occur
Policy B-Report losses immediately
Policy C-Record expenses only when they are certain
Policy D-Record revenues only when they are certain
Of these Enterprise policies, the ones that are consistent with the accounting principle of conservatism are Policies
Correct Answer: B
- Question List (129q)
- Question 1: A health plan's costs can be classified as committed costs o...
- Question 2: A product is often described as having a thin margin or a wi...
- Question 3: Analysts will use the capital asset pricing model (CAPM) to ...
- Question 4: The accounting department of the Enterprise health plan adhe...
- Question 5: With regard to a health plan's underwriting of groups, it ca...
- Question 6: One difference between the internal and external analysis of...
- Question 7: As part of the first step in its strategic planning process,...
- Question 8: The Chamber Health Plan reimburses primary care physicians o...
- Question 9: The Jasmine Company, which self funds the health plan for it...
- Question 10: The process of converting the present value of a specified a...
- Question 11: Rasheed Azari, the risk manager for the Tower health plan, i...
- Question 12: The Fiesta Health Plan prices its products in such a way tha...
- Question 13: One true statement about a health plan's underwriting margin...
- Question 14: The medical loss ratio (MLR) for the Peacock health plan is ...
- Question 15: Dr. Martin Cassini is an obstetrician who is under contract ...
- Question 16: The methods of alternative funding for health coverage can b...
- Question 17: The following statements are about a health plan's capital b...
- Question 18: Providing services under Medicare or Medicaid can impose on ...
- Question 19: The following statements illustrate common forms of capitati...
- Question 20: The following statements indicate the pricing policies of tw...
- Question 21: The Caribou health plan is a for-profit organization. The fi...
- Question 22: One true statement about the rate ratios used by a health pl...
- Question 23: Under the alternative funding method used by the Flair Compa...
- Question 24: The Kayak Company self funds the health plan for its employe...
- Question 25: The Health Maintenance Organization (HMO) Model Act, develop...
- Question 26: In the following paragraph, a sentence contains two pairs of...
- Question 27: The following statements are about the capital budgeting tec...
- Question 28: The Caribou health plan is a for-profit organization. The fi...
- Question 29: Under GAAP, three approaches to expense recognition are gene...
- Question 30: The Caribou health plan is a for-profit organization. The fi...
- Question 31: This concept, which holds that a company should record the a...
- Question 32: Health plans sometimes use global fees to reimburse provider...
- Question 33: Over time, health plans and their underwriters have gathered...
- Question 34: One law prohibits Dr. Laura Cole from making a referral to a...
- Question 35: One true statement about cash-basis accounting is that...
- Question 36: The risk-based capital formula for health plans defines a nu...
- Question 37: The Atoll Health Plan must comply with a number of laws that...
- Question 38: One true statement about mandated benefit laws is that they...
- Question 39: The Challenger Group is a type of management services organi...
- Question 40: The Caribou health plan is a for-profit organization. The fi...
- Question 41: The provider contract that Dr. Timothy Meyer, a pediatrician...
- Question 42: The following statements illustrate the use of different rat...
- Question 43: The following statements are about carve-out programs. Three...
- Question 44: State A, which requires guaranteed issue of at least two man...
- Question 45: One way that a health plan can protect itself against case s...
- Question 46: The following statements are about federal laws and regulati...
- Question 47: An actuary for the Noble Health Plan observed that the plan'...
- Question 48: For each of its products, the Wisteria Health Plan monitors ...
- Question 49: A stop-loss contract may provide that claims are settled usi...
- Question 50: The Danner Bank loaned money to the CareWell Health Plan to ...
- Question 51: The Lighthouse health plan operates in a state that allows t...
- Question 52: In order to calculate a simple monthly capitation payment, t...
- Question 53: The following statements are about various reimbursement arr...
- Question 54: The following statement(s) can correctly be made about a hea...
- Question 55: The provider contract that Dr. Zachery Cogan, an internist, ...
- Question 56: The reimbursement arrangement that Dr. Caroline Monroe has w...
- Question 57: One true statement about variance analysis is that...
- Question 58: One true statement about capital and surplus ratios for heal...
- Question 59: Under the alternative funding method used by the Trilogy Com...
- Question 60: This concept, which is an extension of the going-concern con...
- Question 61: The sentence below contains two pairs of words enclosed in p...
- Question 62: With regard to the Medicaid program in the United States, it...
- Question 63: The Eagle health plan wants to limit the possibility that it...
- Question 64: The Marble Health Plan sets aside a PMPM amount for each spe...
- Question 65: The purest form of a self-funded benefit plan is one in whic...
- Question 66: If Grace Wilson is eligible for benefits under both the Medi...
- Question 67: Experience rating methods can be either prospective or retro...
- Question 68: The ability of a health plan to effectively perform the rati...
- Question 69: Kevin Olin applied for individual healthcare coverage from t...
- Question 70: The following statements are about the Health Insurance Port...
- Question 71: The following statements are about a health plan's pricing o...
- Question 72: The Brookhaven Company is the parent company of two subsidia...
- Question 73: The Harp Company self-funds the health plan for its employee...
- Question 74: When pricing its product, the Panda Health Plan assumes a 4%...
- Question 75: With regard to the major risk factors associated with group ...
- Question 76: With regard to capitation arrangements for hospitals, it can...
- Question 77: A financial analyst wants to learn the following information...
- Question 78: The Newfeld Hospital has contracted with the Azalea Health P...
- Question 79: Julio Benini is eligible to receive healthcare coverage thro...
- Question 80: The following statements are about risk management in health...
- Question 81: In order to show the efficiency of a health plan's managers ...
- Question 82: Users of the Fulcrum Health Plan financial information inclu...
- Question 83: The following statements are about the new methodology autho...
- Question 84: The Newfeld Hospital has contracted with the Azalea Health P...
- Question 85: In a fee-for-service (FFS) reimbursement method, providers a...
- Question 86: A health plan that capitates a provider group typically prov...
- Question 87: Federal law addresses the relationship between Medicare- or ...
- Question 88: Provider reimbursement methods that transfer some utilizatio...
- Question 89: In evaluating the claims experience during a given rating pe...
- Question 90: Health plans seeking to provide comprehensive healthcare pla...
- Question 91: Mandated benefit laws are state or federal laws that require...
- Question 92: Mandated benefit laws are state or federal laws that require...
- Question 93: The following paragraph contains an incomplete statement. Se...
- Question 94: A key factor that distinguishes the various types of health ...
- Question 95: The Cardinal health plan complies with all of the provisions...
- Question 96: The Fairway health plan is a for-profit health plan that iss...
- Question 97: The McGwire Health Plan is a for-profit health plan that iss...
- Question 98: The following statements are about the financial risks for h...
- Question 99: Most organizations that obtain group healthcare coverage can...
- Question 100: Experience rating and manual rating are two rating methods t...
- Question 101: The following statements are about a health plan's underwrit...
- Question 102: Doctors' Care is an individual practice association (IPA) un...
- Question 103: The Kayak Company self funds the health plan for its employe...
- Question 104: One true statement about a type of capitation known as a per...
- Question 105: The NAIC has developed a risk-based capital (RBC) formula fo...
- Question 106: Two sets of financial accounting standards are generally acc...
- Question 107: Companies typically produce three types of budgets: operatio...
- Question 108: The Fiesta Health Plan prices its products in such a way tha...
- Question 109: The Acorn Health Plan uses a resource-based relative value s...
- Question 110: Reconciliation is the process by which a health plan assesse...
- Question 111: The Violin Company offers its employees a triple option of h...
- Question 112: The physicians who work for the Sunrise Health Plan, a staff...
- Question 113: For this question, select the answer choice containing the t...
- Question 114: Three general strategies that health plans use for controlli...
- Question 115: If the Ascot health plan's accountants follow the going-conc...
- Question 116: Because a health plan cannot decline coverage for individual...
- Question 117: Under the doctrine of corporate negligence, a health plan an...
- Question 118: The Eclipse Health Plan is a not-for-profit health plan that...
- Question 119: The Sanford Group, a provider group, entered into a risk con...
- Question 120: The Coral Health Plan, a for-profit health plan, has two sou...
- Question 121: Several federal agencies establish rules and requirements th...
- Question 122: Variance analysis is the study of the difference between exp...
- Question 123: The following statements are about pure risk and speculative...
- Question 124: The Zane health plan uses a base of accounting known as accr...
- Question 125: The Poplar Company and a Blue Cross/Blue Shield organization...
- Question 126: The Montvale Health Plan purchased a piece of real estate 20...
- Question 127: Costs that can be defined by behavior are most commonly clas...
- Question 128: The following examples describe situations that expose an in...
- Question 129: With regard to the financial statements prepared by health p...
