AHM-520 Latest Exam Braindumps
Question 10: The Caribou health plan is a for-profit organization. The financial statements that Caribouprepares include balance sheets, income statements, and cash flow statements. To prepare its cash
flow statement, Caribou begins with the net income figure as reported on its income statement and
then reconciles this amount to operating cash flows through a series of adjustments. Changes in
Caribou's cash flow occur as a result of the health plan's operating activities, investing activities, and
financing activities.
The main purpose of Caribou's balance sheet is to
A. Reveal how Caribou obtained particular assets or liabilities
B. Show how much money Caribou has realized from its operations during an accounting period
C. Measure the owners' wealth
D. Reconcile the cash that Caribou has on hand at the beginning and at the end of an accounting
period
Correct Answer: C
