Worldatwork T7 Exam Practice Test Instant Access

Question 1

Which of the following should be used when discounting a benefit in order to determine the present value of the defined benefit obligation and the current service cost?

AFair value

BTime value of money

CNet present value

DThe corporate vision

Answer : C

Question 2

What is the purpose of an income statement?

ATo show liability and equity and the manner in which those funds are employed

BTo account for changes in cash during the accounting period

CTo show details of the nature of a company's operating activities

DTo reconcile the beginning and ending balances of stockholders' equity

Answer : C

Question 3

What is the purpose of a balance sheet?

ATo show sources of funds and the manner in which those funds are employed

BTo account for changes in cash during the accounting period

CTo show details of the nature of a company's operating activities

DTo reconcile the beginning and ending balances of stockholders' equity

Answer : A

Question 4

What is the purpose of a statement of cash flow?

ATo show liability and equity and the manner in which those funds are employed in a manner which is useful for users of the statement

BTo account for changes in cash during the accounting period in a manner which is useful for users of the statement

CTo show details of the nature of a company's operating activities in a manner which is useful for users of the statement

DTo reconcile the beginning and ending balances of stockholders' equity in a manner which is useful for users of the statement

Answer : B

Question 5

What are the main equity categories in a statement of stockholders' equity?

ARetained earnings and treasury stock

BInvesting activities and financing activities

COperating revenues and noncurrent assets

DRevenue items and owners' equity

Answer : A

Question 6

What is the reconciliation of the beginning and ending balances of stockholders' equity accounts called?

AStatement of Financial Position

BStatement of Income

CStatement of Cash Flows

DStatement of Stockholders' Equity

Answer : D

Question 7

What are the expenses related to a company's financing and investing activities called?

ANoncurrent expenses

BCurrent liabilities

CNon operating expenses

DOperating expenses

Answer : C

Worldatwork T7 International Financial Reporting Standards for Compensation Professionals Exam Practice Test