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International Financial Reporting Standards for Compensation Professionals Exam

Last Update 19 hours ago Total Questions : 89

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Question # 4

Level 2 of the conceptual framework of International Accounting Standards Board (IASB) identifies qualitative characteristics of accounting information. These characteristics distinguish more useful information from less useful information.

To what end is this distinction useful?

A.

For reporting purposes

B.

For business strategy

C.

For decision-making purposes

D.

For organizational vision

Question # 5

Predictive value is an ingredient of which of the following fundamental characteristics of information?

A.

Complete

B.

Comparability

C.

Relevance

D.

Neutral

Question # 6

What is the sum of current and noncurrent liabilities called?

A.

Total cost

B.

Current debt

C.

Total expenses

D.

Total liabilities

Question # 7

What is a constructive obligation?

A.

When a company recognizes the expected cost of profit-sharing and bonus payments

B.

When a company has no realistic alternative but to make 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

Question # 8

Paid annual leave and paid sick leave are examples of which kind of employee benefits?

A.

Short-term benefits

B.

Post-employment benefits

C.

Termination benefits

D.

Long-term benefits

Question # 9

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

A.

Complete, neutral, freedom from error

B.

Assets, liabilities, equity

C.

Predictive value, confirmatory value, relevance

D.

Comparability, verifiability, timeliness

Question # 10

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 subject interpretation, and therefore to bias

D.

Historical cost is not verifiable

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