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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?

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Suggested Answer: D

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

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Stephaine
5 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
5 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
5 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
4 months ago
Actually, it's considered a liability in accounting terms.
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Micaela
4 months ago
I'm not sure, but I think it might be a noncurrent expense.
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Derick
4 months ago
Yeah, I agree. It's definitely a liability.
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Leigha
4 months ago
I think it's considered a liability.
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Willodean
5 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
5 months ago
I think the answer is D) A liability.
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Leonard
5 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
4 months ago
I agree, a liability seems like the safest choice.
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Wynell
5 months ago
I'm not sure, but I think it's more of a long term benefit.
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Suzi
5 months ago
I think it's a liability too. Makes sense to me.
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Katina
5 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
5 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
4 months ago
Yes, it's important for companies to recognize and account for these future obligations.
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Kristal
4 months ago
D) A liability
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Goldie
4 months ago
That's an interesting perspective, but in accounting terms, it's considered a liability.
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Deandrea
4 months ago
A) The employee value proposition
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Skye
4 months ago
Exactly, it's a future obligation that the company must fulfill.
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Dulce
5 months ago
D) A liability
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