WorldatWork International Financial Reporting Standards for Compensation Professionals

QUESTION NO: 1
In a defined contribution benefit plan, who assumes risk?

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

Correct Answer: C

QUESTION NO: 2
Current assets comprise assets that can be converted to cash. They must be converted within what time period?

A. Within two years B. Within a year C. Before the end of the fiscal year D. Within a fiscal year

Correct Answer: B

QUESTION NO: 3
To estimate how much the employees have earned for their work in the current and prior periods in order to attribute the benefit to the periods of service and to incorporate estimates about demographics and financial variables into calculations, a company must utilize what method?

A. Re-measurement method B. Net present value method C. Fair value method D. Projected unit credit method

Correct Answer: D

QUESTION NO: 4
In defined contribution plans when the contributions are not expected to be settled wholly before twelve months after the end of the reporting period, what must occur?

A. Contributions must not be discounted B. The employer must assume risk for the plan C. The employer must pay a specified amount to the employee D. Contributions must be discounted

Correct Answer: D

QUESTION NO: 5
When an employee has provided service in exchange for benefits to be paid in the future, what is it considered in accounting terms?

A. A noncurrent expense B. A liability C. A long term benefit D. The employee value proposition

Correct Answer: B

QUESTION NO: 6
What is the sum of current and noncurrent liabilities called?

A. Total liabilities B. Current debt C. Total cost D. Total expenses

Correct Answer: A

QUESTION NO: 7
Which of the following is the term that describes total net sales minus total expenses?

A. Operating expenses B. Total income C. Net income D. Current assets

Correct Answer: C

QUESTION NO: 8
Defined benefit pension commitments often represent a company's largest single financial liability. IAS 19 was amended as of January, 2014. What does this amendment require?

A. That surplus or deficit of a pension fund be detailed in the financial statement B. That any existing deficit of a pension fund be detailed in the financial statement C. That companies state whether they have a defined benefit or defined contribution plan in the financial statement D. That any projected deficit of a pension fund be detailed in the financial statement

Correct Answer: A

QUESTION NO: 9
Employee benefits provided in exchange for the end of an employee's employment are considered what kind of benefits?

A. Short-term benefits B. Long-term benefits C. Termination benefits D. Post-employment benefits

Correct Answer: C

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