Health Plan Finance and Risk Management
Question No. 1
The Caribou health plan is a for-profit organization. The financial statements that Caribou prepares 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.
Caribou is engaged in an operating activity when it
Choose the correct option from the given list.
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