WorldatWork T7 - International Financial Reporting Standards for Compensation Professionals Exam Exam

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Total 89 questions

Recognition of revenue when earned and the matching of expenses when incurred describes which of the following practices?

  • A. Business accounting
  • B. Cash basis accounting
  • C. IASB accounting
  • D. Accrual accounting


Answer : D

The concept that numbers and descriptions must match what really existed or happened is represented by which fundamental qualitative characteristic?

  • A. Predictive value
  • B. Complete
  • C. Faithful representation
  • D. Relevance


Answer : C

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

A statement of cash flows provides information on which of the following primary business 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

In a defined contribution benefit plan, who assumes risk?

  • A. Employees
  • B. Employers
  • C. Both employees and employers


Answer : A

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Total 89 questions