WorldatWork WC-C8 Online Practice Questions and Exam Preparation

WorldatWork WC-C8 Online Questions & Answers

• Question 11:

  To ensure appropriate funding levels, the compensation professional must generally do which of the following?

  A. Possess a high level of education and competency in accounting principles
  B. Determine which programs are crucial to the enterprise and which programs are expendable
  C. Partner with multiple departments and external consultants and vendors
  D. Demonstrate broad understanding of principles of financial management and business expertise
  D. Demonstrate broad understanding of principles of financial management and business expertise

• Question 12:

  Which financial statement or combination of statements provide(s) the most comprehensive view of the company's financial situation?

  A. The balance sheet
  B. The income statement
  C. The cash flow statement and the income statement
  D. The cash flow statement, along with the balance sheet and income statement
  D. The cash flow statement, along with the balance sheet and income statement

• Question 13:

  What best describes an effective core technique for communicating with executives?

  A. Focus on negative issues first, such as compensation costs exceeding budget, to get their attention
  B. Provide a wide range of facts and figures. With their high level of responsibility, executives must have all the data before they can make informed decisions.
  C. Assume they have little knowledge of the issue and make a detailed presentation leading up to the purpose of the meeting.
  D. Recommend a solution that will solve the issue and explain why it is the best solution available.
  D. Recommend a solution that will solve the issue and explain why it is the best solution available.

• Question 14:

  What challenge is most likely faced by a business with low market share and high growth potential?

  A. Its ability to generate profits is unknown.
  B. It is in the worst market position and has insufficient resources to continue operations.
  C. It is unclear how to best utilize the high cash flow to sustain growth.
  D. Its excess resources are often used to develop other businesses that may not be mission-critical.
  A. Its ability to generate profits is unknown.

• Question 15:

  Using efficient and cost-effective approaches to integrate technology into the workplace is an example of what key competency for compensation professionals?

  A. Financial Management
  B. HR Management
  C. Resource Management
  D. Policy Management
  C. Resource Management

• Question 16:

  Regarding fixed and variable costs, what are Finance's primary concerns?

  A. Fixed costs must be kept to a minimum, but variable costs can fluctuate since they tend to correlate with revenue.
  B. Variable costs often have a heavier focus than fixed costs, which applies to all areas, including compensation.
  C. Fixed costs and variable costs are equally important and both should be kept to a minimum.
  D. Fixed costs are not a concern because they cannot be changed, so the focus is primarily on variable costs.
  B. Variable costs often have a heavier focus than fixed costs, which applies to all areas, including compensation.

• Question 17:

  Who are you most likely to hear from if there are questions about an employee's compensation?

  A. The employee
  B. A concerned co-worker
  C. The employee's manager
  D. The employee's department head
  C. The employee's manager

• Question 18:

  Information on the annual report shows results for what time period?

  A. The calendar year from January 1 to December 31
  B. The fiscal year, which matches the calendar year from January 1 to December 31
  C. The fiscal year, which shows results from July 1 to June 30
  D. The fiscal year, which may match the calendar year or may be a different 12-month period, depending on the company
  D. The fiscal year, which may match the calendar year or may be a different 12-month period, depending on the company

• Question 19:

  What information is found on the balance sheet?

  A. A list of what is owned, what is owed and the equity of an entity
  B. The revenues and expenses incurred by an entity over a period of time
  C. The change during the reporting period in cash and cash equivalents
  D. The profitability of the company as of a specific date
  A. A list of what is owned, what is owed and the equity of an entity

• Question 20:

  What best describes the primary purpose of budgeting?

  A. Limiting spending to a fixed percentage of organizational revenue
  B. Making choices about spending based on expectations of performance
  C. Increasing profitability of the business annually to maximize shareholder/owner value
  D. Complying with local legislation and maintaining accurate records to prepare financial reports and tax documents
  B. Making choices about spending based on expectations of performance