Worldatwork T7 Quiz 1 Topic 2 Questions 1-5

Question: 1

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?

AThe employee value proposition

BAn expense

CA benefit

DA cost

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Question: 2

When the economic consequences of a standard or rule is ignored, which characteristic is being represented?

ANeutral

BVerifiability

CComplete

DRelevance

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Question: 3

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?

AThat surplus or deficit of a pension fund be detailed in the financial statement

BThat any existing deficit of a pension fund be detailed in the financial statement

CThat any projected deficit of a pension fund be detailed in the financial statement

DThat companies state whether they have a defined benefit or defined contribution plan in the financial statement

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Question: 4

What is the purpose of a balance sheet?

ATo show sources of funds and the manner in which those funds are employed

BTo account for changes in cash during the accounting period

CTo show details of the nature of a company's operating activities

DTo reconcile the beginning and ending balances of stockholders' equity

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Question: 5

Which characteristic requires a high degree of consensus among individuals on a given measurement?

AFaithful representation

BVerifiability

CComparability

DNeutral

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Worldatwork T7 Quiz:1 Topic:2 Questions:1-5