@weekeong81: adding onto what Billy and Dick have already suggested; from the way the '88' levels are arranged, what the program might be doing is:
First: Setting any one of the values from 'ACTIVE', 'INACTIVE', 'DROPPED' to TRUE
Second: Later down the line in the same program, checking the 'WS-STATUS' whether it falls under -- 'VALID STATUS' category, in which case the three values will be validated.
This can be done by coding any conditional statement such as below (please note your code 'might' be using some other condition)
IF VALID-STATUS <-- Method 1
an EVALUATE TRUE statement with --
WHEN VALID-STATUS <-- Method 2
I agree that the original query pertains to the value in WS-STATUS, but the purpose of having this kind of arrangement is tad bit different and can pertain to as above (the installation I currently support, has quite a few COBOL progs which use similar logic). Though as Dick has suggested the SET clause here can be made better, by setting a specific value.