Worldatwork T7 Exam Practice Test Instant Access

Question 1

When does a present obligation exist?

AWhen the employee renders service

BWhen the company has no realistic alternative but to make the payments

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

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

Answer : B

Question 2

Why is accounting for short-term employee benefits generally a straightforward process?

ABecause no actuarial assumptions are required to measure the obligation or cost and there is no possibility of any actuarial gain or loss

BBecause short-term employee benefit obligations are measured on a discounted basis

CBecause short-term employee benefits are not provided in exchange for the service of the employee

DBecause the employer is required to incorporate actuarial assumptions into measurement of the obligation and the expenses

Answer : A

Question 3

Profit-sharing and bonuses are an example of which kind of employee benefits?

AShort-term benefits

BPost-employment benefits

CTermination benefits

DLong-term benefits

Answer : D

Question 4

Defined contribution plans are an example of which kind of employee benefits?

AShort-term benefits

BPost-employment benefits

CTermination benefits

DLong-term benefits

Answer : B

Question 5

Paid annual leave and paid sick leave are examples of which kind of employee benefits?

AShort-term benefits

BPost-employment benefits

CTermination benefits

DLong-term benefits

Answer : A

Question 6

When the quality of information confirms users' earlier expectations, which characteristic is being represented?

AVerifiability

BPredictive value

CConfirmatory value

DFaithful representation

Answer : C

Question 7

Identify the characteristic being employed when companies in the same industry are using the same accounting principles.

AComparability

BRelevance

CFaithful representation

DVerifiability

Answer : A

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

Question 1

Question 2

Question 3

Question 4

Question 5

Question 6

Question 7