Cyber Monday 2024! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25

- Free Preparation Discussions

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?

A0.5% of profit

B2.5% of profit

C3% of profit

D5.5% of profit

Show Suggested 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

5 months ago

Makes sense. They would recognize what they realistically expect to pay.

upvoted 0 times

...

Mammie

6 months ago

The company estimates turnover and actual payment will reduce to 2.5%.

upvoted 0 times

...

Carma

6 months ago

Why do you think B is correct?

upvoted 0 times

...

Mammie

6 months ago

I think the answer might be B) 2.5% of profit.

upvoted 0 times

...

Carma

7 months ago

Yeah, it's all about their liability and expense.

upvoted 0 times

...

Cassie

7 months ago

This profit-sharing question is tricky.

upvoted 0 times

...

az-700 pass4success az-104 200-301 200-201 cissp 350-401 350-201 350-501 350-601 350-801 350-901 az-720 az-305 pl-300

Warning: Cannot modify header information - headers already sent by (output started at /pass.php:70) in /pass.php on line 77