← Back to exam page

T7 – International Financial Reporting Standards for Compensation Professionals

Loading demo links...

Showing 4–6 of 10 questions

Question 4

The economic activities of US-based Company XYZ is divided into 12-month periods for the purpose of issuing annual reports. Which basic assumption of accounting does this practice represent?

Select an option, then click Submit answer.

  • ○

    Going concern
  • ○

    Monetary unit
  • ○

    Periodicity
  • ○

    Economic entity
Question 5

When the economic consequences of a standard or rule is ignored, which characteristic is being represented?

Select an option, then click Submit answer.

  • ○

    Neutral
  • ○

    Verifiability
  • ○

    Complete
  • ○

    Relevance
Question 6

Which of the following best defines the term “liability”?

Select an option, then click Submit answer.

  • ○

    A resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity
  • ○

    A present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits
  • ○

    Decreases in economic benefits during the accounting period in the form of outflows or depletions of assets or incurrences of liabilities that result in decreases in equity, other than those relating to distributions to equity participants
  • ○

    Increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants