Free WorldatWork T7 Exam Dumps Questions & Answers

Who appoints International Accounting Standards Board (IASB) members?

• A.Standards Advisory Council (SAC)
• B.International Accounting Standards Board (IASB) staff
• C.International Accounting Standards Committee (IASC) Foundation
• D.International Financial Reporting Interpretations Committee (IFRIC)

What is one of the main purposes of the International Financial Reporting Interpretations Committee (IFRIC)?

• A.Discuss the roles and responsibilities of the International Accounting Standards Board (IASB) and its advisory groups
• B.Provide guidance on reporting issues not specifically addressed in International Accounting Standards Board (IASB)'s standards
• C.Provide advice to International Accounting Standards Board (IASB) on priorities
• D.Monitor International Accounting Standards Board (IASB)'s effectiveness, raise funds, and approve budget

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?

• A.0.5% of profit
• B.2.5% of profit
• C.3% of profit
• D.5.5% of profit

Which of the following is a disadvantage of reporting assets at historical cost?

• A.Historical cost is not objective
• B.Historical cost is not particularly relevant to most readers
• C.Historical cost is not verifiable
• D.Historical cost is subject interpretation, and therefore to bias

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?

• A.Net defined benefit liability (asset)
• B.Net present value
• C.Asset ceiling
• D.Fair value