WorldatWork International Financial Reporting Standards for Compensation Professionals

Question 1

In a defined contribution benefit plan, who assumes risk?

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

Discussion 0

Correct Answer: B Vote an answer

Question 2

Level 3 of the conceptual framework for financial reporting includes five basic assumptions. Which of the following describes the basic assumption of economic entity?

A. The company can divide its economic activities into time periods B. Transactions are recorded in the periods in which the events occur C. The company keeps its activity separate from its owners and other business units D. The company lasts long enough to fulfill objectives and commitments

Discussion 0

Correct Answer: C Vote an answer

Question 3

Companies desire more current assets than current liabilities. What is the difference between current assets and current liabilities called?

A. Net working capital B. Net income C. Noncurrent liabilities D. Total liabilities

Discussion 0

Correct Answer: A Vote an answer

Question 4

A US-based company reports information about pending lawsuits in the notes to its financial statements. This is an example of which basic principle of accounting?

A. Full disclosure B. Constraints C. Going concern D. Expense recognition

Discussion 0

Correct Answer: A Vote an answer

Question 5

What is the main objective of IAS 19?

A. To prescribe the timing of payments B. To prescribe the accounting and disclosure for employee benefits C. To draw a distinction between long and short term benefits D. To draw a distinction between a defined contribution and defined benefit plan

Discussion 0

Correct Answer: B Vote an answer

Question 6

Which of the following is true of liabilities?

A. Noncurrent liabilities come due in less than a year B. Current liabilities come due in less than a year C. Current liabilities come due in less than 18 months D. Both current and noncurrent liabilities come due in less than a year

Discussion 0

Correct Answer: B Vote an answer

Question 7

What is one of the primary purposes of the International Accounting Standards Board (IASB)?

A. To align US standards and International Accounting Standards Board (IASB) standards B. To monitor International Accounting Standards Board (IASB) effectiveness C. To appoint Standards Advisory Council (SAC) members D. To develop a single set of high quality and enforceable global accounting standards

Discussion 0

Correct Answer: D Vote an answer

Question 8

What is the term that describes the outflows of assets or incurring of liabilities during a period as a result of delivering or producing goods and/or rendering services?

A. Expenses B. Period costs C. Production costs D. Cost of materials

Discussion 0

Correct Answer: A Vote an answer

Question 9

What is the reconciliation of the beginning and ending balances of stockholders' equity accounts called?

A. Statement of Stockholders' Equity B. Statement of Cash Flows C. Statement of Financial Position D. Statement of Income

Discussion 0

Correct Answer: A Vote an answer

WorldatWork International Financial Reporting Standards for Compensation Professionals - T7 FREE EXAM DUMPS QUESTIONS & ANSWERS