Worldatwork Exam T7 Topic 3 Question 97 Discussion

Actual exam question for Worldatwork's T7 exam

Question #: 97
Topic #: 3

[All T7 Questions]

When an employee has provided service in exchange for benefits to be paid in the future, what is it considered in accounting terms?

AThe employee value proposition

BA long term benefit

CA noncurrent expense

DA liability

Show Suggested Answer

Suggested Answer: D

by India at Sep 14, 2024, 04:06 AM

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Stephaine

9 months ago

Ahh, the age-old question of 'What do we owe our employees?' Sounds like a liability to me, folks. Or maybe it's just a really long-term IOU. Either way, the company's on the hook!

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Rosenda

9 months ago

I'm not sure, but I think it could also be considered as C) A noncurrent expense since it's a cost incurred over a long period of time.

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Kasandra

9 months ago

The employee value proposition? Is this some kind of HR nonsense? I'll stick with the good old-fashioned 'liability' choice.

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Aleisha

8 months ago

Actually, it's considered a liability in accounting terms.

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Micaela

8 months ago

I'm not sure, but I think it might be a noncurrent expense.

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Derick

8 months ago

Yeah, I agree. It's definitely a liability.

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Leigha

8 months ago

I think it's considered a liability.

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Willodean

9 months ago

I agree with Marilynn, because the benefits to be paid in the future create an obligation for the company.

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Marilynn

9 months ago

I think the answer is D) A liability.

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Leonard

9 months ago

A noncurrent expense? What kind of accounting voodoo is that? I'm going with the liability option - can't go wrong there.

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Denny

8 months ago

I agree, a liability seems like the safest choice.

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Wynell

9 months ago

I'm not sure, but I think it's more of a long term benefit.

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Suzi

9 months ago

I think it's a liability too. Makes sense to me.

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Katina

9 months ago

I don't know, the 'long term benefit' answer sounds right to me. Isn't that what we're talking about here?

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Annalee

9 months ago

Definitely a liability. The company has a future obligation to the employee, so it's a clear liability on the books.

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Dean

8 months ago

Yes, it's important for companies to recognize and account for these future obligations.

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Kristal

8 months ago

D) A liability

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Goldie

8 months ago

That's an interesting perspective, but in accounting terms, it's considered a liability.

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Deandrea

8 months ago

A) The employee value proposition

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Skye

8 months ago

Exactly, it's a future obligation that the company must fulfill.

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Dulce

9 months ago

D) A liability

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