Question : 41. For the year ended December 31, 2012, Burlington Company had : 1208124

Accounting

41. For the year ended December 31, 2012, Burlington Company had cash collections from customers of $50,000, cash paid to employees of $8,000, cash paid to suppliers of $25,000, cash used to retire long-term bonds of $8,000, and cash payments for dividends of $5,000. Cash provided by operating activities for 2012 is:
A. $4,000.
B. $9,000.
C. $17,000.
D. $25,000.

42. The only difference between the cash flow statement prepared under the indirect method as opposed to the direct method is the manner in which the:
A. Cash flows from financing activities is presented.
B. Schedule of non-cash items is presented.
C. Cash flows from operating activities is presented.
D. Cash flows from investing activities is presented.

43. Worcester Company sold equipment for $25,000 cash. The equipment had cost $40,000 and had accumulated depreciation of $22,000 at the time of the sale. Based on this information alone, select the True statement.
A. Cash flow from investing activities would be less if the statement of cash flows is prepared by the direct method than if it is prepared under the indirect method.
B. Cash flow from investing activities would be greater if the sale of equipment is reported on the statement of cash flows under the direct method than if it is reported under the indirect method.
C. Cash flow from investing activities would be the same regardless of whether the statement of cash flows is prepared by the direct method or the indirect method.
D. The answer cannot be determined because the amount of the salvage value is unknown.

44. Which of the following would not be reported as an investing activity on the statement of cash flows?
A. Cash loaned to another company.
B. Cash dividends received from an investment in marketable securities.
C. Cash received from the sale of equipment.
D. Cash loaned to another company and cash dividends received from an investment in marketable securities.

45. What will Morrow Company report as additions to property, plant, and equipment on its 2012 statement of cash flows?
A. $50,000
B. $26,000
C. $59,000
D. $74,000

46. What will Morrow Company report as proceeds from the sale of property, plant, and equipment on its 2012 statement of cash flows?
A. $9,000
B. $3,000
C. $31,000
D. $24,000

47. What is the net cash flow from investing activities?
A. $124,000 outflow
B. $124,000 inflow
C. $144,000 inflow
D. $144,000 outflow

48. During 2012, the Afton Company had the following changes in account balances:
1) The accumulated depreciation account had a beginning balance of $50,000 and an ending balance of $70,000. The increase was due to depreciation expense.
2) The long-term notes payable account had a beginning balance of $80,000 and an ending balance of $30,000. The decrease was due to repayment of debt.
3) The accounts receivable account had a beginning balance of $120,000 and an ending balance of $100,000. The difference was due to collection of receivables.
4) The equipment account had a beginning balance of $50,000 and an ending balance of $185,000. The increase was due to the purchase of equipment for cash.
5) The long term investments account (marketable securities) had a beginning balance of $36,000 and an ending balance of $25,000. The decrease was due to the sale of investments at cost.
6) The amount of cash dividends declared and paid during the year was $44,000.
7) The interest payable account had a beginning balance of $4,500 and an ending balance of $2,500. The difference was due to the payment of interest.
What is the net cash flow from financing activities?
A. $44,000 inflow
B. $50,000 inflow
C. $50,000 outflow
D. $94,000 outflow

49. Assume that a statement of cash flows has been prepared. The combination of the three major components (operating activities, investing activities, financing activities) equals the:
A. Change in the cash account balance between the beginning and end of the period.
B. Net income for the period.
C. Ending cash balance.
D. Amount of cash inflow for the period.

50. If cash from operations was $6,000, cash from investing activities was ($12,000) and the net change in cash was $12,000, what was cash from financing activities?
A. ($18,000)
B. $6,000
C. $12,000
D. $18,000

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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.