Free AHIP AHM-520 Exam Questions

Become AHIP Certified with updated AHM-520 exam questions and correct answers

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Total 215 Questions | Updated On: Dec 07, 2025

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Question 1

In order to determine a health plan's quick liquidity ratio, a financial analyst would divide the health plan's:

A : Total assets not invested in affiliates by its total liabilities

B : Liquid assets by its total liabilities

C : Liquid assets by its contractual reserves

D : Total assets by its contractual reserves

Answer: C

Question 2

In a fee-for-service (FFS) reimbursement method, providers are paid per treatment or per service that they provide.

One typical benefit of FFS reimbursement is that it:

A : Is highly effective in preventing excessive services that take the form of churning, unbundling, and upcoding

B : Provides physicians who attempt to control costs with a higher rate of compensation than is provided to physicians who make the effort to control costs

C : Is relatively easy to initiate, especially in markets where managed care penetration is low

D : Guards against the practice of defensive medicine

Answer: B

Question 3

A health plan's costs can be classified as committed costs or discretionary costs. An example of a discretionary cost for a health plan is the cost of its:

A : Facilities

B : Executive salaries

C : Employee training

D : Equipment

Answer: A

Question 4

Companies typically produce three types of budgets: operational budgets, cash budgets, and capital budgets. The following statements are about operational budgets. Select the answer choice containing the correct statement.

A : Expense budgets, a type of operational budget, typically describe fixed expenses rather than variable expenses.

B : Operational budgets can only show information by department or by line of business.

C : Operational budgets begin with a forecast of sales revenue and investment income.

D : Revenue budgets, a type of operational budget, indicate the amount of income from operations that a company received from the previous budget period

Answer: C

Question 5

If the Ascot health plan's accountants follow the going-concern concept under GAAP, then these accountants most likely:

A : Assume that Ascot will pay its liabilities immediately or in full during the current accounting period

B : Defer certain costs that Ascot has incurred, unless these costs contribute to the health plan's future earnings

C : Assume that Ascot is not about to be liquidated, unless there is evidence to the contrary

D : Value Ascot's assets more conservatively than they would under SAP

Answer: C

Page: 1 / 43

Total 215 Questions | Updated On: Dec 07, 2025

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