Worldatwork t7 online test

International Financial Reporting Standards forCompensation Professionals Exam

What students need to know about the t7 exam

  • Total 89 Questions & Answers

Question 1

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
Answer:

A

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Question 2

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. Greater comparability between companies equals lower cost to investors
  • D. Less competition among exchanges
Answer:

C

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Question 3

Who appoints International Accounting Standards Board (IASB) members?

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

B

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Question 4

Which statement below most accurately describes a primary purpose of the International Accounting
Standards Committee (IASC) Foundation?

  • A. Approves principles-based standards and informs International Accounting Standards Board (IASB) of implications of proposed standards
  • B. Oversees standards set for the public sector
  • C. Monitors International Accounting Standards Board (IASB)s effectiveness, raise funds, approve budget, responsible for constitution
  • D. Provides advice to International Accounting Standards Board (IASB) on priorities
Answer:

C

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Question 5

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
Answer:

A

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Question 6

Which body has the sole responsibility for setting standards?

  • A. Standards Advisory Council (SAC)
  • B. International Accounting Standards Board (IASB)
  • C. International Financial Reporting Interpretations Committee (IFRIC)
  • D. Accounting Principles Board (APB)
Answer:

B

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Question 7

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

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

A

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Question 8

Which of the following most accurately describes the overall objective of financial reporting?

  • A. Provide information that is useful for decision making
  • B. Enable International Accounting Standards Board (IASB) to issue more useful and consistent pronouncements
  • C. Enhance and organization’s financial consistency over time as Board members change
  • D. To classify an organization’s stakeholders as either internal or external information users
Answer:

A

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Question 9

What is one of the purposes of International Accounting Standards Board (IASB)s conceptual
framework, which establishes the concepts that underlie financial reporting?

  • A. Provides information about economic entities that is useful in making economic decisions
  • B. Provides guidance where conflicting interpretations have developed
  • C. Provides benchmark for judgments
  • D. Informs International Accounting Standards Board (IASB) of implications of proposed standards
Answer:

C

Discussions

Question 10

One of the reasons preparers use the conceptual framework is to:

  • A. Develop accounting policies in the absence of specific standards
  • B. Document a historical record of all judgments
  • C. Develop alternate interpretations of specific standards
  • D. Encourage change to standards as Board members change
Answer:

A

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