Worldatwork Exam T7 Topic 3 Question 104 Discussion

Actual exam question for Worldatwork's T7 exam

Question #: 104
Topic #: 3

Which of the following should be used when discounting a benefit in order to determine the present value of the defined benefit obligation and the current service cost?

AFair value

BTime value of money

CNet present value

DThe corporate vision

Show Suggested Answer

Suggested Answer: C

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

Limited Time Offer

25%

Off

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

Contribute your Thoughts:

Submit Cancel

Iesha

24 days ago

I believe A) Fair value might also play a role in discounting benefits.

upvoted 0 times

...

Leota

1 months ago

I think C) Net present value could also be considered for determining present value.

upvoted 0 times

...

Josefa

1 months ago

Haha, D is just completely irrelevant. What's the corporate vision got to do with the present value of a defined benefit obligation?

upvoted 0 times

Pearline

6 days ago

Haha, I agree, D is definitely not the right choice here.

upvoted 0 times

...

Tora

12 days ago

C) Net present value is a key factor in calculating the current service cost.

upvoted 0 times

...

Nickolas

16 days ago

B) Time value of money is essential when discounting a benefit.

upvoted 0 times

...

Leeann

21 days ago

A) Fair value is used to determine the present value of the defined benefit obligation.

upvoted 0 times

...

Raul

1 months ago

A and C both sound like they could be right, but B specifically mentions the 'time value of money' which is key for this type of calculation.

upvoted 0 times

Herman

23 days ago

I agree, B is the right choice for determining the present value of defined benefit obligations.

upvoted 0 times

...

Ciara

30 days ago

I think B is the correct answer because the time value of money is crucial for discounting benefits.

upvoted 0 times

...

Caren

1 months ago

I agree with Maia, time value of money is essential for discounting benefits.

upvoted 0 times

...

Maia

2 months ago

B) Time value of money should be used.

upvoted 0 times

...

Sharan

2 months ago

I'm pretty sure the answer is B. The time value of money is a fundamental concept in determining the present value of future benefits.

upvoted 0 times

Justine

16 days ago

Exactly, it's an essential tool for financial analysis and decision-making.

upvoted 0 times

...

Valentin

1 months ago

So, we can use it to calculate the present value of the defined benefit obligation and current service cost.

upvoted 0 times

...

Sabra

1 months ago

Yes, it helps us determine the present value of future benefits accurately.

upvoted 0 times

...

Louvenia

1 months ago

I think you're right, the time value of money is crucial for discounting benefits.

upvoted 0 times

...