Worldatwork T7 Exam Questions

Questions for the T7 were updated on : Jun 07 ,2024

Page 1 out of 6. Viewing questions 1-15 out of 89

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

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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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Question 11

Which of the following describes the concerns of Level 3 of the conceptual framework for financial
reporting?

  • A. Basic objective
  • B. Recognition, measurement, and disclosure concepts
  • C. Fundamental concepts
  • D. Elements of financial statements
Answer:

B

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Question 12

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
Answer:

C

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Question 13

Which fundamental qualitative characteristics make accounting information useful for decision-
making?

  • A. Relevance and faithful representation
  • B. Cost and materiality
  • C. Assets and liability
  • D. Income and expenses
Answer:

A

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Question 14

Which of the following are ingredients of the fundamental characteristic of relevance?

  • A. Cost and materiality
  • B. Predictive value and confirmatory value
  • C. Relevance and faithful representation
  • D. Timeliness and understandability
Answer:

B

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Question 15

The concept that numbers and descriptions must match what really existed or happened is
represented by which fundamental qualitative characteristic?

  • A. Predictive value
  • B. Complete
  • C. Faithful representation
  • D. Relevance
Answer:

C

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