Worldatwork CECP Exam Questions Instant Access

Question 1

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 2

How is the purpose of a non-profit organization typically communicated?

AExplained throughout the mission, vision, values and strategy

BImplied in the mission, vision and strategy and specifically explained on the organization's website

CReflected in the mission, vision, values and strategy although often not stated directly

DDocumented internally but not released to the public to protect trade secrets and maintain competitive advantage

Answer : C

Question 3

Which of the following best describes present value?

AThe current value of holdings

BThe current value of holdings and how much it will grow over time at a given rate of return

CThe desired value in the future and what needs to be invested today to realize that amount

DThe difference between the desired value in the future and the current value as a percentage of the desired value

Answer : C

Question 4

Quarterly financial reports typically include data for a given quarter compared to what?

AThe previous quarter

BThe budget

CThe same quarter in the previous year, plus the current six-month or nine-month cumulative comparables

DThe aggregate performance of the same quarter in the previous three years

Answer : C

Question 5

What most accurately describes a reason why organizations use financial reports?

ATo differentiate company financial data from industry competitors to prevent loss of proprietary information

BTo provide subjective information to key constituents that reflects the company's performance in the most favorable manner depending on stakeholder priorities

CTo create a historical record of financial performance and identify trends that may justify changes in strategy

DTo promote consistency of communication regarding company performance and value

Answer : D

Question 6

What is a ''profit model?''

AThe intention or purpose of the business

BA descriptor for how the company works

CThe financial objectives of the organization

DThe plan for how the organization generates revenue and makes money

Answer : D

Question 7

Which of the following is the best example of a variable cost?

AAudit fees

BRent

CMaintenance

DShipping

Answer : D

Worldatwork Certified Executive Compensation Professional CECP Exam Questions