Independence Day Special Limited Time 65% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: netdisc

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

Demo: 13 questions
Total 89 questions

International Financial Reporting Standards for Compensation Professionals Exam Questions and Answers

Question 1

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

Options:

A.

Complete, neutral, freedom from error

B.

Assets, liabilities, equity

C.

Predictive value, confirmatory value, relevance

D.

Comparability, verifiability, timeliness

Question 2

When a company consumes the economic benefit arising from service provided by an employee in exchange for employee benefits, what is it considered in accounting terms?

Options:

A.

The employee value proposition

B.

An expense

C.

A benefit

D.

A cost

Question 3

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

Options:

A.

Verifiability

B.

Predictive value

C.

Confirmatory value

D.

Faithful representation

Question 4

Company XYZ has a group of six employees who will be retiring in four years -- on the 31st of December. Each retiree will receive $125,000. Company XYZ’s accountants must make provisions in their accounts for this. Calculate the present value of future payments based on a discount rate of 10%.

Options:

A.

$512,250

B.

$551,250

C.

$515,500

D.

$521,500

Question 5

Which of the following describes the change in the net defined benefit liability (asset) during the period due to passage of time?

Options:

A.

Past service cost

B.

Current service cost

C.

Net interest on the net defined benefit liability (asset)

D.

Time value of money

Question 6

Employee benefits that are not short-term, post-employment or termination benefits are considered what kind of benefits?

Options:

A.

Short-term benefits

B.

Post-employment benefits

C.

Termination benefits

D.

Long-term benefits

Question 7

Which of the following plans obliges an employer to pay a specified amount of benefits to the employee?

Options:

A.

Post-employment plan

B.

Defined contribution plan

C.

Defined benefit plan

D.

Bonus plan

Question 8

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

Options:

A.

Business accounting

B.

Cash basis accounting

C.

IASB accounting

D.

Accrual accounting

Question 9

Which statement best describes the revalued amount of an asset?

Options:

A.

Its fair value at the date of revaluation less accumulated impairment

B.

Its fair value at the date of revaluation less accumulated depreciation

C.

Its fair value, less retained earnings

D.

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

Question 10

What is the purpose of a statement of cash flow?

Options:

A.

To show liability and equity and the manner in which those funds are employed in a manner which is useful for users of the statement

B.

To account for changes in cash during the accounting period in a manner which is useful for users of the statement

C.

To show details of the nature of a company’s operating activities in a manner which is useful for users of the statement

D.

To reconcile the beginning and ending balances of stockholders’ equity in a manner which is useful for users of the statement

Question 11

Level 2 of the conceptual framework of International Accounting Standards Board (IASB) identifies qualitative characteristics of accounting information. These characteristics distinguish more useful information from less useful information.

To what end is this distinction useful?

Options:

A.

For reporting purposes

B.

For business strategy

C.

For decision-making purposes

D.

For organizational vision

Question 12

What is one of the purposes of International Accounting Standards Board (IASB)’s conceptual framework, which establishes the concepts that underlie financial reporting?

Options:

A.

Provides information about economic entities that is useful in making economic decisions

B.

Provides guidance where conflicting interpretations have developed

C.

Provides benchmark for judgments

D.

Informs International Accounting Standards Board (IASB) of implications of proposed standards

Question 13

Neutral and complete are ingredients of which of the following fundamental characteristics of accounting information?

Options:

A.

Faithful representation

B.

Relevance

C.

Predictive value

D.

Comparability

Demo: 13 questions
Total 89 questions