WorldatWork T7 - International Financial Reporting Standards for Compensation Professionals Exam Exam
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Total 89 questions
Question #1 (Topic: )
Recognition of revenue when earned and the matching of expenses when incurred
describes which of the following practices?
describes which of the following practices?
A. Business accounting
B. Cash basis accounting
C. IASB accounting
D. Accrual accounting
Answer: D
Question #2 (Topic: )
The concept that numbers and descriptions must match what really existed or happened is
represented by which fundamental qualitative characteristic?
represented by which fundamental qualitative characteristic?
A. Predictive value
B. Complete
C. Faithful representation
D. Relevance
Answer: C
Question #3 (Topic: )
When does a present obligation exist?
A. When the employee renders service
B. When the company has no realistic alternative but to make the payments
C. When a change in the companys informal practices would cause unacceptable damage to its relationship with employees
D. When the company recognizes the expected cost of profit-sharing and bonus payments
Answer: B
Question #4 (Topic: )
A statement of cash flows provides information on which of the following primary business
activities of a company?
activities of a company?
A. Cash inflows, cash outflows, payment of dividends
B. Operating activities, cash inflows, cash outflows
C. Cash sales, investing activities, payment of dividends
D. Operating, investing, and financing activities
Answer: D
Question #5 (Topic: )
In a defined contribution benefit plan, who assumes risk?
A. Employees
B. Employers
C. Both employees and employers
Answer: A
