Question : 111. What the key difference between the direct method and indirect : 1245936

Accounting

111. What is the key difference between the direct method and indirect method for preparing the Statement of Cash Flows?
A. presentation of Cash from Operations
B. presentation of Cash from Investing
C. presentation of Cash from Financing
D. presentation of Cash from Investing and Cash from Financing
E. presentation of Cash from Operations, Cash from Investing and Cash from Financing

112. The _____ for preparing the Statement of Cash Flows begins with net income and adjusts that amount for noncash items.
A. indirect method
B. direct method
C. income method
D. bottom-up method
E. top-down method

113. Many analysts focus attention on cash flow from operations, thinking it as important as, or more important than, net income. A common misconception is that the management has little opportunity to manipulate transactions affecting the statement of cash flows. The manipulation possibilities arise from
A. the amounts of cash flows.
B. the timing of cash flows.
C. the classification and disclosure in the statement and related notes.
D. both choices b and c.
E. none of the above.

114. Firms have some choice as to when they disburse cash. Firms that delay making payments to suppliers, employees, and others during the last several days of an accounting period
A. conserve cash and increase cash flow from operations for that period.
B. conserve cash and decrease cash flow from operations for that period.
C. do not conserve cash and increase cash flow from operations for that period.
D. do not conserve cash and decrease cash flow from operations for that period.
E. do not effect the cash balance and has no affect on cash flow from operations for that period.

115. Firms have some choice as to when they disburse cash. A firm may delay making payments to suppliers, employees, and others during the last several days of an accounting period. When this firm makes the cash payments during the early part of the next period, cash flow from
A. operations decreases.
B. operations increases.
C. financing decreases.
D. financing increases.
E. investing decreases.

116. Firms have some choice as to when they disburse cash. A firm may delay making payments to suppliers, employees, and others during the last several days of an accounting period and then make the cash payments during the early part of the next period. The firm
A. decreases cash flow from financing during the first period but increases cash flow from financing during the second period.
B. increases cash flow from operations during the first period but decreases cash flow from operations during the second period.
C. decreases cash flow from operations during the first period but increases cash flow from operations during the second period.
D. increases cash flow from financing during the first period but decreases cash flow from financing during the second period.
E. increases cash flow from investing during the first period but decreases cash flow from investing during the second period.

117. Regarding the Statement of Cash Flow, which of the following is not true regarding operations?
A. A financially healthy company generates sustained cash inflows from selling goods and providing services
B. Assessed over several years, the cash flow from operations indicates the extent to which operating activities generate more cash than they use
C. A firm can use the excess cash flow from operations to acquire buildings and equipment, pay dividends, retire long-term debt
D. A firm cannot use the excess cash flow from operations for investing and financing activities
E. All of the above are not true.

118. Firms not experiencing rapid growth can often finance capital expenditures with
A. cash flow from operations.
B. borrowed funds.
C. issue common shares.
D. sales of existing noncurrent assets.
E. none of the above.

119. Rapidly growing firms must often _____ to finance their acquisitions of noncurrent assets.
A. sell existing noncurrent assets
B. borrow funds
C. issue common shares
D. choices b and c
E. choices a, b and c

120. Firms can use free cash flow to
A. repay borrowing.
B. pay a dividend.
C. repurchase common shares.
D. add to cash on the balance sheet.
E. all of the above.

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July 1, 2023

1) Members of OSHA's $100,000 club have:

A) invested more than $100,000 in health and safety equipment for employees.

B) purchased health and safety insurance coverage of at least $100,000.

C) received fines of $100,000 or more for safety or health violations.

D) paid more than $100,000 in workers' compensation claims.

2) Workplace safety is a significant issue because approximately ________ employees were injured on the job in 2009.

A) 3,000,000

B) 1,000,000

C) 500,000

D) 250,000

3) According to the doctrine of contributory negligence, employers were:

A) not responsible for an employees' injury when another employee's negligence caused the injury.

B) not liable for an employee's injuries when that employee's own negligence caused the injury.

C) responsible for compensating employees for all work-related illnesses and accidents.

D) not responsible for any employees' injuries under any circumstances.

4) Workers' compensation laws vary by state, but all are built on the theory that:

A) employees' personal health insurance should pay the medical costs of any injuries.

B) work-related accidents are costs of doing business and should be paid for by employers.

C) governments are responsible for paying the medical costs related to an employee's injuries.

D) employers are not responsible for employee injuries resulting from the employee's own negligence.

5) Which of the following is a true statement about workers' compensation?

A) Workers' compensation laws are federally mandated and enforced by OSHA.

B) Non-union firms are not required to carry workers' compensation insurance.

C) Workers' compensation is not mandatory in all U.S. states.

D) Most states had workers' compensation programs by 1911.

6) Workers' compensation:

A) pays only if the worker cannot.

B) is considered a no-fault system.

C) is mandatory in all fifty states.

D) covers employees' medical costs with Medicaid.

7) The primary goal of state workers' compensation laws is best described as:

A) providing a means for injured workers to receive care and income without having to sue.

B) determining the cause of work-related accidents and minimizing future accidents.

C) ensuring that employers are not held responsible for accidents caused by worker negligence.

D) spreading the cost of workplace accidents among all workers in the state.

8) The ________ holds that employers are not held liable for an employee's injuries when the negligence of another employee contributed to or caused the accident.

A) doctrine of contributory negligence

B) fellow-servant rule

C) general duty provision

D) "no-fault" rule

9) Which of the following is most likely true?

A) Workers' compensation is a federal program. OSHA is the organization that helps individual states meet workers' compensation standards.

B) Workers' compensation is a federal program that provides compensation to employees injured on the job. OSHA is a federal program that creates and enforces safety standards in the work place.

C) OSHA is a federal program that creates safety standards for work environments. Workers' compensation programs are created by the individual states to provide compensation for employees injured on the job.

D) OSHA is a federal program that provides compensation for employees injured on the job. Workers' compensation programs are state programs that provide compensation for employees injured on the job.

10) Workers' compensation:

A) replaces the worker's entire income until he/she is able to work again.

B) provides benefits for permanent, but not temporary, impairment.

C) gives survivors burial allowances and income benefits.

D) covers medical expenses up to $100,000.