An Analysis of Changes in Selected Statement of Financial Position

question 81

Multiple Choice

An analysis of changes in selected statement of financial position accounts of Johnson Company shows the following for the current year:
$\begin{array} { | l | l | } \hline \text { Property, Plant, and Equipment accounts: } & \\\hline \text { Debit entries to asset accounts } & \$ 160,000 \\\hline \text { Credit entries to asset accounts } & \$ 118,000 \\\hline \begin{array} { c } \text { Debit entries to accumulated depreciation accounts } \\\text { (resulting from sale of PPE assets) }\end{array} & \$ 91,000 \\\hline \begin{array} { c } \text { Credit entries to accumulated depreciation accounts } \\\text { (representing depreciation for the current year) }\end{array} & \$ 107,000 \\\hline\end{array}$ Johnson 's income statement for the current year includes a $14,000 loss on disposal of property, plant, and equipment. All payments and proceeds relating to purchase or sale of property, plant, and equipment were in cash.

-The amount of cash paid by Johnson to acquire property, plant, and equipment during the current year was:

• A) $53,000.
• B) $267,000.
• C) $42,000.
• D) $160,000.

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Definitions:

Employee Services

Various support services provided by employers to enhance the well-being and productivity of their workforce, such as health care, counseling, and transportation.

Flexible Versus Fixed Benefits

A comparison between two types of benefits; flexible benefits can be tailored to individual needs, while fixed benefits are standardized and not changeable.

Health Care Spending Account

A tax-advantaged account that employees can use to pay for eligible health care expenses not covered by insurance.

Benefits System

A structured approach an organization uses to administer employees' non-wage compensations, such as health insurance, retirement plans, and other perks.