Worldatwork T7 Exam Practice Test Instant Access

Question 1

What is the present value of any economic benefits available in the form of refunds from or reductions in the future contributions to the defined benefits plan called?

ANet defined benefit liability (asset)

BAsset ceiling

CFair value

DNet present value

Answer : B

Question 2

When a company consumes the economic benefit arising from service provided by an employee in exchange for employee benefits, what is it considered in accounting terms?

AThe employee value proposition

BAn expense

CA benefit

DA cost

Answer : B

Question 3

What is the main objective of IAS 19?

ATo prescribe the accounting and disclosure for employee benefits

BTo prescribe the timing of payments

CTo draw a distinction between long and short term benefits

DTo draw a distinction between a defined contribution and defined benefit plan

Answer : A

Question 4

What are balanced sheets and income statements linked by?

AInvesting activities

BRetained earnings

CExpenses

DNet income

Answer : B

Question 5

A statement of cash flows provides information on which of the following primary business activities of a company?

ACash inflows, cash outflows, payment of dividends

BOperating activities, cash inflows, cash outflows

CCash sales, investing activities, payment of dividends

DOperating, investing, and financing activities

Answer : D

Question 6

Companies desire more current assets than current liabilities. What is the difference between current assets and current liabilities called?

ANet income

BTotal liabilities

CNet working capital

DNoncurrent liabilities

Answer : C

Question 7

Which of the following is true of liabilities?

ACurrent liabilities come due in less than a year

BCurrent liabilities come due in less than 18 months

CNoncurrent liabilities come due in less than a year

DBoth current and noncurrent liabilities come due in less than a year

Answer : A

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