Worldatwork T7 Exam Practice Test Instant Access

Question 1

In a defined contribution benefit plan, who assumes risk?

AEmployees

BEmployers

CBoth employees and employers

Answer : A

Question 2

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

Question 3

What are the usual and customary costs that a company incurs to support its main business called?

AOperating expenses

BCurrent liabilities

CCurrent debt

DTotal expenses

Answer : A

Question 4

Which of the following is the term that describes total net sales minus total expenses?

AOperating expenses

BNet income

CTotal income

DCurrent assets

Answer : B

Question 5

What is the sum of current and noncurrent liabilities called?

ATotal cost

BCurrent debt

CTotal expenses

DTotal liabilities

Answer : D

Question 6

Which of the following is a disadvantage of reporting assets at historical cost?

AHistorical cost is not objective

BHistorical cost is not particularly relevant to most readers

CHistorical cost is subject interpretation, and therefore to bias

DHistorical cost is not verifiable

Answer : B

Question 7

Which statement best describes the revalued amount of an asset?

AIts fair value at the date of revaluation less accumulated impairment

BIts fair value at the date of revaluation less accumulated depreciation

CIts fair value, less retained earnings

DIts fair value at the date of revaluation less accumulated depreciation and accumulated impairment

Answer : D

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