Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

Worldatwork Exam T7 Topic 2 Question 87 Discussion

Actual exam question for Worldatwork's T7 exam
Question #: 87
Topic #: 2
[All T7 Questions]

The profit-sharing plan of Company ABC requires the company pay a specified proportion of its profit for the year to employees who serve throughout the year. If no employees leave during the year, the total profit-sharing payments for the year will be 3% of profit. The company estimates that staff turnover will reduce the payments to 2.5% of profit. What does Company ABC recognize as a liability and an expense?

Show Suggested Answer Hide Answer
Suggested Answer: B

by Linette at May 09, 2024, 03:06 PM

Limited Time Offer

25%

Off

Get Premium T7 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel
Sharmaine
2 months ago
Makes sense. They would recognize what they realistically expect to pay.
upvoted 0 times
...
Mammie
2 months ago
The company estimates turnover and actual payment will reduce to 2.5%.
upvoted 0 times
...
Carma
2 months ago
Why do you think B is correct?
upvoted 0 times
...
Mammie
3 months ago
I think the answer might be B) 2.5% of profit.
upvoted 0 times
...
Carma
3 months ago
Yeah, it's all about their liability and expense.
upvoted 0 times
...
Cassie
4 months ago
This profit-sharing question is tricky.
upvoted 0 times
...

Save Cancel