WorldatWork International Financial Reporting Standards for Compensation Professionals Exam T7 Question # 23 Topic 3 Discussion

WorldatWork International Financial Reporting Standards for Compensation Professionals Exam T7 Question # 23 Topic 3 Discussion

T7 Exam Topic 3 Question 23 Discussion:
Question #: 23
Topic #: 3

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?


A.

0.5% of profit


B.

2.5% of profit


C.

3% of profit


D.

5.5% of profit


Get Premium T7 Questions

Contribute your Thoughts:


Chosen Answer:
This is a voting comment (?). It is better to Upvote an existing comment if you don't have anything to add.