Worldatwork c8 60 Exam Practice Test Instant Access

Question 1

Regarding compensation communications with executives, where do they tend to need the greatest level of understanding?

AIn the methods and processes used to make pay decisions

BIn the details of their individual compensation packages

CIn the overall program objectives

DIn the differences in pay levels for the different levels of the organization

Answer : C

Question 2

Which of the following is the earnings available to equity owners after paying debt and taxes?

AEBIT

BEPS

CNet income

DOperating profit

Answer : C

Question 3

What is the top line or starting point of an organization's income?

AGross profit

BRevenue

CNet income

DOperating profit

Answer : B

Question 4

What do profits, equity and debt all have in common?

AThey are all reported on the balance sheet.

BThey are all sources of capital.

CThey all incur the same costs to the business.

DNothing. Each of these is a different financial metric.

Answer : B

Question 5

Which financial statement or combination of statements provide(s) the most comprehensive view of the company's financial situation?

AThe balance sheet

BThe income statement

CThe cash flow statement and the income statement

DThe cash flow statement, along with the balance sheet and income statement

Answer : D

Question 6

What information is found on the balance sheet?

AA list of what is owned, what is owed and the equity of an entity

BThe revenues and expenses incurred by an entity over a period of time

CThe change during the reporting period in cash and cash equivalents

DThe profitability of the company as of a specific date

Answer : A

Question 7

How do quarterly reports most commonly compare to the annual report?

AThe cumulative information on the four quarterly reports adds up to the information on the annual report.

BThe quarterly reports are more detailed. The annual report provides similar data in summary form.

CThe annual report is required and the quarterly reports, while commonly used, are optional.

DThe quarterly reports are not as detailed as annual reports, and might not match due to changing accounting estimates over the year.

Answer : D

Worldatwork c8 Business Acumen for Compensation Professional 60 Exam Practice Test