T7

T7 practice questions, page 4 of 4, with answer review and explanations.

Question 16

When an employee has provided service in exchange for benefits to be paid in the future, what is it considered in accounting terms?

  1. The employee value proposition
  2. A long term benefit
  3. A noncurrent expense
  4. A liability

Question 17

What are the main equity categories in a statement of stockholders’ equity?

  1. Retained earnings and treasury stock
  2. Investing activities and financing activities
  3. Operating revenues and noncurrent assets
  4. Revenue items and owners’ equity