Worldatwork T7 Exam Questions Instant Access

Question 1

Employee benefits provided in exchange for the end of an employee's employment are considered what kind of benefits?

AShort-term benefits

BPost-employment benefits

CTermination benefits

DLong-term benefits

Answer : C

Question 2

What are the main equity categories in a statement of stockholders' equity?

ARetained earnings and treasury stock

BInvesting activities and financing activities

COperating revenues and noncurrent assets

DRevenue items and owners' equity

Answer : A

Question 3

Company XYZ outsourced its printing services to a specialist printing firm. The specialist firm took responsibility for the staff, though the team remains on Company XYZ's premises. Which of the following is true?

ABecause they remain on your premises, they are considered staff costs

BDue to the outsourcing of the staff, they are now considered service-supplier costs rather than staff costs

Answer : B

Question 4

Which statement best describes the revalued amount of an asset?

AIts fair value at the date of revaluation less accumulated impairment

BIts fair value at the date of revaluation less accumulated depreciation

CIts fair value, less retained earnings

DIts fair value at the date of revaluation less accumulated depreciation and accumulated impairment

Answer : D

Question 5

The profit-sharing plan of Company ABC requires the company pay a specified proportion of its profit for the year to employees who serve throughout the year. If no employees leave during the year, the total profit-sharing payments for the year will be 3% of profit. The company estimates that staff turnover will reduce the payments to 2.5% of profit. What does Company ABC recognize as a liability and an expense?

A0.5% of profit

B2.5% of profit

C3% of profit

D5.5% of profit

Answer : B

Question 6

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 7

Which of the following is the term that describes total net sales minus total expenses?

AOperating expenses

BNet income

CTotal income

DCurrent assets

Answer : B

Worldatwork International Financial Reporting Standards for Compensation Professionals T7 Exam Questions