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WorldatWork T7 Exam (page: 1)
WorldatWork International Financial Reporting Standards for Compensation Professionals Exam
Updated on: 07-Nov-2025

Viewing Page 1 of 19
T7 PDF 89 Questions

Which statement best describes the revalued amount of an asset?

  1. Its fair value at the date of revaluation less accumulated impairment
  2. Its fair value at the date of revaluation less accumulated depreciation
  3. Its fair value, less retained earnings
  4. Its fair value at the date of revaluation less accumulated depreciation and accumulated impairment

Answer(s): D



Which of the following should be used when discounting a benefit in order to determine the present value of the defined benefit obligation and the current service cost?

  1. Fair value
  2. Time value of money
  3. Net present value
  4. The corporate vision

Answer(s): C



When the quality of information confirms users’ earlier expectations, which characteristic is being represented?

  1. Verifiability
  2. Predictive value
  3. Confirmatory value
  4. Faithful representation

Answer(s): C



Why is faithful representation important in accounting documentation?

  1. It ensures neutrality on the part of the company’s accounting department
  2. It guarantees that all information is free from error
  3. It is useful if information represents what it purports to represent
  4. It indicates that accountants have confirmed all of the data

Answer(s): C



What is a constructive obligation?

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

Answer(s): C



Viewing Page 1 of 19



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