Worldatwork Exam T7 Topic 3 Question 104 Discussion

Actual exam question for Worldatwork's T7 exam

Question #: 104
Topic #: 3

[All T7 Questions]

Why is accounting for short-term employee benefits generally a straightforward process?

ABecause no actuarial assumptions are required to measure the obligation or cost and there is no possibility of any actuarial gain or loss

BBecause short-term employee benefit obligations are measured on a discounted basis

CBecause short-term employee benefits are not provided in exchange for the service of the employee

DBecause the employer is required to incorporate actuarial assumptions into measurement of the obligation and the expenses

Show Suggested Answer

Suggested Answer: C

by Kiley at Dec 08, 2024, 02:43 PM

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Wilda

20 hours ago

D? Really? Incorporating actuarial assumptions for short-term benefits? That sounds like way more work than necessary. A is the way to go, no doubt.

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Luis

8 days ago

Hmm, I was leaning towards B, but I guess discounting short-term benefits doesn't make sense since they're usually paid out soon anyway. A seems like the clear winner here.

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Gail

16 days ago

I disagree. I believe accounting for short-term employee benefits is straightforward because they are measured on a discounted basis.

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Virgina

16 days ago

I think the correct answer is A. Short-term employee benefits don't require actuarial assumptions, which makes the accounting process straightforward. No risk of actuarial gains or losses either.

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Pete

17 days ago

I agree with Malinda. Short-term employee benefits are not provided in exchange for the service of the employee, so it's easier to measure the obligation.

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Malinda

25 days ago

I think accounting for short-term employee benefits is straightforward because no actuarial assumptions are required.

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