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 a constructive obligation?

AWhen a company recognizes the expected cost of profit-sharing and bonus payments

BWhen a company has no realistic alternative but to make payments

CWhen a change in the company's informal practices would cause unacceptable damage to its relationship with employees

DThe required accounting entry for liabilities or accrued expenses or cash paid

Answer : C

Question 3

Employee benefits that are payable after the completion of employment are considered what kind of benefits?

AShort-term benefits

BPost-employment benefits

CTermination benefits

DLong-term benefits

Answer : B

Question 4

The IAS 19 standard applies to which of the following groups of employees?

ADirectors and management personnel

BAll employees except casual employees

CAll employees

DAll full-time employees

Answer : C

Question 5

When an employee has provided service in exchange for benefits to be paid in the future, what is it considered in accounting terms?

AThe employee value proposition

BA long term benefit

CA noncurrent expense

DA liability

Answer : D

Question 6

The following requirements are characteristic of which term below? Must be reported on the balance sheet; must be owned or controlled by the company; and must possess expected future benefits.

AAssets

BOwners' equity

CContributed capital

DLiabilities

Answer : A

Question 7

Which of the following is one of the four main financial statements?

AStatement of full disclosure

BStatement of assets

CStatement of changes in shareholders' equity

DStatement of accrual accounting

Answer : C

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