Câu 9: AHM-520: Health Plan Finance and Risk Management

The following transactions occurred at the Lane Health Plan:Transaction 1 — Lane recorded a $25,000 premium prior to receiving the paymentTransaction 2 — Lane purchased $500 in office expenses on account, but did not record the expense until it received the bill a month laterTransaction 3 — Fire destroyed one of Lane’s facilities; Lane waited until the facility was rebuilt before assessing and recording the amount of lossTransaction 4 — Lane sold an investment on which it realized a $14,000 gain; Lane recorded the gain only after the sale was completed. Of these transactions, the one that is consistent with the accounting principle of conservatism is:

1. A. Transaction 1
2. B. Transaction 2
3. C. Transaction 3
4. D. Transaction 4 — đáp án hiện tại