WorldatWork Certified Compensation Professional (CCP) T7 Questions & Answers

• Question 11:

  Profit-sharing and bonuses are an example of which kind of employee benefits?

  A. Short-term benefits

  B. Post-employment benefits

  C. Termination benefits

  D. Long-term benefits

  Correct Answer: D

• Question 12:

  Why is accounting for short-term employee benefits generally a straightforward process?

  A. Because no actuarial assumptions are required to measure the obligation or cost and there is no possibility of any actuarial gain or loss

  B. Because short-term employee benefit obligations are measured on a discounted basis

  C. Because short-term employee benefits are not provided in exchange for the service of the employee

  D. Because the employer is required to incorporate actuarial assumptions into measurement of the obligation and the expenses

  Correct Answer: A

• Question 13:

  Which statement below most accurately describes a primary purpose of the Standards Advisory Council (SAC)?

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

  B. Appoints International Accounting Standards Board (IASB) members

  C. Approves principles-based standards but does not issue detailed application guidelines

  D. Has the sole responsibility for setting standards

  Correct Answer: A

• Question 14:

  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. Expense recognition

  C. Going concern

  D. Constraints

  Correct Answer: A

• Question 15:

  Which of the following is the term that describes total net sales minus total expenses?

  A. Operating expenses

  B. Net income

  C. Total income

  D. Current assets

  Correct Answer: B

• Question 16:

  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?

  A. The employee value proposition

  B. An expense

  C. A benefit

  D. A cost

  Correct Answer: B

• Question 17:

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

  A. Statement of Financial Position

  B. Statement of Income

  C. Statement of Cash Flows

  D. Statement of Stockholders' Equity

  Correct Answer: D

• Question 18:

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

  A. Faithful representation

  B. Relevance

  C. Predictive value

  D. Comparability

  Correct Answer: A

• Question 19:

  The IAS 19 standard applies to which of the following groups of employees?

  A. Directors and management personnel

  B. All employees except casual employees

  C. All employees

  D. All full-time employees

  Correct Answer: C

• Question 20:

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

  A. To develop a single set of high quality and enforceable global accounting standards

  B. To align US standards and International Accounting Standards Board (IASB) standards

  C. To appoint Standards Advisory Council (SAC) members

  D. To monitor International Accounting Standards Board (IASB) effectiveness

  Correct Answer: A