Worldatwork T7 Exam Questions Instant Access

Question 1

Which of the following are ingredients of the fundamental qualitative characteristics of faithful representation?

AComplete, neutral, freedom from error

BAssets, liabilities, equity

CPredictive value, confirmatory value, relevance

DComparability, verifiability, timeliness

Answer : A

Question 2

What is one of the primary purposes of the International Accounting Standards Board (IASB)?

ATo develop a single set of high quality and enforceable global accounting standards

BTo align US standards and International Accounting Standards Board (IASB) standards

CTo appoint Standards Advisory Council (SAC) members

DTo monitor International Accounting Standards Board (IASB) effectiveness

Answer : A

Question 3

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

Question 4

Which of the following is true of accrual accounting?

ANeither the recognition of revenue nor the recording of expense necessarily involves the receipt or payment of cash

BIt rests on a primary guiding principle, which is recognition

CThe recognition of revenue involves the receipt or payment of cash, while the recording of expense does not

DIt entails recording income or expenditure only when money comes into or leaves the company

Answer : A

Question 5

In a defined contribution benefit plan, who assumes risk?

AEmployees

BEmployers

CBoth employees and employers

Answer : A

Question 6

What are the two guiding principles of accrual accounting?

AExpense recognition and matching

BRevenue recognition and matching

CRevenue recognition and measurement

DCost and materiality

Answer : B

Question 7

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

Worldatwork International Financial Reporting Standards for Compensation Professionals T7 Exam Questions