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T7 Practice Exam Questions and Answers

International Financial Reporting Standards for Compensation Professionals Exam

Last Update 2 days ago
Total Questions : 89

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Question # 1

The profit-sharing plan of Company ABC requires the company pay a specified proportion of its profit for the year to employees who serve throughout the year. If no employees leave during the year, the total profit-sharing payments for the year will be 3% of profit. The company estimates that staff turnover will reduce the payments to 2.5% of profit. What does Company ABC recognize as a liability and an expense?

Options:

A.  

0.5% of profit

B.  

2.5% of profit

C.  

3% of profit

D.  

5.5% of profit

Discussion 0
Question # 2

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

Options:

A.  

Statement of Financial Position

B.  

Statement of Income

C.  

Statement of Cash Flows

D.  

Statement of Stockholders’ Equity

Discussion 0
Question # 3

Company XYZ outsourced its printing services to a specialist printing firm. The specialist firm took responsibility for the staff, though the team remains on Company XYZ’s premises. Which of the following is true?

Options:

A.  

Because they remain on your premises, they are considered staff costs

B.  

Due to the outsourcing of the staff, they are now considered service-supplier costs rather than staff costs

Discussion 0
Question # 4

Employee benefits that are expected to be settled wholly before twelve months after the end of the annual reporting people in which the employee rendered the related service are considered what kind of benefits?

Options:

A.  

Short-term benefits

B.  

Post-employment benefits

C.  

Termination benefits

D.  

Long-term benefits

Discussion 0
Question # 5

Which of the following is one of the four main financial statements?

Options:

A.  

Statement of full disclosure

B.  

Statement of assets

C.  

Statement of changes in shareholders’ equity

D.  

Statement of accrual accounting

Discussion 0
Question # 6

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

Discussion 0
Question # 7

A statement of cash flows provides information on which of the following primary business activities of a company?

Options:

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

Discussion 0
Question # 8

Why is faithful representation important in accounting documentation?

Options:

A.  

It ensures neutrality on the part of the company’s accounting department

B.  

It guarantees that all information is free from error

C.  

It is useful if information represents what it purports to represent

D.  

It indicates that accountants have confirmed all of the data

Discussion 0
Question # 9

Issuance of interim reports is an example of what enhancing characteristic?

Options:

A.  

Comparability

B.  

Verifiability

C.  

Relevance

D.  

Timeliness

Discussion 0
Question # 10

What is the present value of any economic benefits available in the form of refunds from or reductions in the future contributions to the defined benefits plan called?

Options:

A.  

Net defined benefit liability (asset)

B.  

Asset ceiling

C.  

Fair value

D.  

Net present value

Discussion 0
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