Free WorldatWork T7 Exam Dumps Questions & Answers

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.  Constraints
• D.  Going concern

Which of the following are ingredients of the fundamental qualitative characteristics of faithful representation?

• A.  Comparability, verifiability, timeliness
• B.  Predictive value, confirmatory value, relevance
• C.  Complete, neutral, freedom from error
• D.  Assets, liabilities, equity

What is a constructive obligation?

• A.  When a company has no realistic alternative but to make payments
• B.  When a company recognizes the expected cost of profit-sharing and bonus payments
• C.  When a change in the company's informal practices would cause unacceptable damage to its relationship with employees
• D.  The required accounting entry for liabilities or accrued expenses or cash paid

IAS 19 classifies employee benefits into four main categories. Which of the following best represent those categories?

• A.  Short-term benefits, post-employment benefits, long-term benefits, termination benefits
• B.  Wages, short-term benefits, long-term benefits, termination benefits
• C.  Wages, short-term benefits, bonuses, termination benefits
• D.  Wages, profit-sharing, bonuses, non-monetary bonuses

Which of the following is a benefit of moving toward a single set of standards?

• A.  Create equity across the economies of different countries
• B.  Reduce the number of cross-border capital flows
• C.  Less competition among exchanges
• D.  Greater comparability between companies equals lower cost to investors