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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Hayley

11 days ago

Haha, short-term benefits without actuarial assumptions? That's like the accounting version of a cheat code. A all the way, easy peasy!

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Muriel

2 days ago

I agree, A is definitely the right choice. No need for complicated calculations.

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Wilda

14 days 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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France

4 days ago

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

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Luis

21 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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Bulah

19 hours ago

User 1: I think A is the right answer.

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Gail

29 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

29 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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Cassi

I agree, short-term employee benefits don't involve actuarial assumptions.

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Pete

30 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

1 months ago

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

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