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Worldatwork Exam T7 Topic 2 Question 90 Discussion

Actual exam question for Worldatwork's T7 exam

Question #: 90
Topic #: 2

[All T7 Questions]

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 Nickie at Jun 20, 2024, 02:51 PM

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Lavonda

5 months ago

I'm going with B. Time value of money. It's the only one that makes sense in the context of this question. Unless the company is run by a bunch of visionaries, that is.

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Alana

4 months ago

Yeah, B is the most logical choice here. It's all about determining the present value accurately.

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Iola

5 months ago

I agree, B is the correct answer. Time value of money is essential for discounting benefits.

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Malinda

5 months ago

A. Fair value? Pffft, that's just asking to get tricked. I bet the accountants cooked that one up to see who's paying attention.

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Han

4 months ago

A) Fair value? Pffft, that's just asking to get tricked. I bet the accountants cooked that one up to see who's paying attention.

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Tenesha

4 months ago

C) Net present value

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Annelle

4 months ago

B) Time value of money

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Renay

5 months ago

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

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Omer

5 months ago

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

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Nada

5 months ago

D. The corporate vision? Really? What does that have to do with discounting a defined benefit obligation? Sounds like a trick answer to me.

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Nikita

4 months ago

I agree, D) The corporate vision doesn't seem relevant to discounting benefits.

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Melodie

4 months ago

I think it's B) Time value of money. That's what we learned in class.

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Wenona

4 months ago

D) The corporate vision

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Eliz

4 months ago

C) Net present value

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Adria

4 months ago

B) Time value of money

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Elli

4 months ago

A) Fair value

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Vivienne

6 months ago

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

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Bambi

6 months ago

I don't know, C. Net present value sounds more like the right approach to me. Gotta consider the big picture, you know?

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Kenneth

6 months ago

I'm pretty sure the answer is B. Time value of money is crucial for discounting future benefits to determine the present value.

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Valentin

5 months ago

So, the answer is B) Time value of money.

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Chan

5 months ago

Yes, that's correct. It helps determine the present value of the defined benefit obligation.

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Reita

5 months ago

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

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Erick

6 months ago

B) Time value of money should be used.

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