International Financial Reporting Standards for Compensation Professionals Exam: T7

What is the purpose of a balance sheet?

A. To show sources of funds and the manner in which those funds are employed

B. To account for changes in cash during the accounting period

C. To show details of the nature of a company's operating activities

D. To reconcile the beginning and ending balances of stockholders' equity

Which of the following is the term that describes total net sales minus total expenses?

A. Operating expenses

B. Net income

C. Total income

D. Current assets

In a defined contribution benefit plan, who assumes risk?

A. Employees

B. Employers

C. Both employees and employers