Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Corporate Financial Reporting Total Number of Question: 40 Time: 41 Minutes Please check your email after completion of test for result. All the best... Name Phone No Email Area Pin Code 1. Under Ind AS 103, goodwill is measured as: Fair value of consideration transferred Difference between the purchase price and the fair value of assets acquired Excess of fair value of identifiable net assets over the cost of the business combination The sum of share capital of the acquired company None 2. Ind AS 103 deals with: Accounting Policies Financial Instruments Business Combinations Consolidated Financial Statements None 3. In a business combination, the acquirer should recognize: All assets and liabilities at their fair values Only tangible assets Goodwill and intangible assets only All liabilities without assets None 4. Under Ind AS 110, a subsidiary is a company that is controlled by: Another entity A foreign company Its management The parent company’s shareholders None 5. In a group of companies, consolidated financial statements are prepared for: The parent company only All the subsidiaries only The parent company and its subsidiaries The shareholders of the parent company None 6. Ind AS 109 provides guidelines for accounting for: Business Combinations Financial Instruments Revenue from Contracts with Customers Share-based Payments None 7. Under Ind AS 109, financial assets can be classified into: Amortized Cost Fair Value through Other Comprehensive Income Fair Value through Profit or Loss All of the above None 8. The fair value of financial instruments is determined based on: Historical cost Present value of future cash flows Market price or valuation model Current cost of acquisition None 9. Which of the following financial instruments is NOT measured at fair value under Ind AS 109? Derivatives Equity instruments held for trading Loans and receivables Debt securities held to maturity None 10. Under Ind AS 109, which of the following statements is TRUE about a financial asset held at amortized cost? It is measured using the historical cost It is held for trading purposes It is subject to changes in market value It is held to collect contractual cash flows None 11. Ind AS 33 provides guidance on: Earnings Per Share Employee Benefits Share-based Payments Leases None 12. Basic earnings per share (EPS) is calculated by dividing: Net profit by the number of ordinary shares in circulation Total revenue by the number of shares issued Net profit by total assets Gross profit by the number of shares None 13. Diluted EPS accounts for: Only outstanding shares Potential dilutive effects of securities such as options and convertible debt Dividends distributed during the period Only public shares None 14. Shareholders’ equity includes: Share capital Retained earnings Accumulated other comprehensive All of the above None 15. Treasury stock is reported under shareholders’ equity as: An asset A liability A deduction from equity A separate line item None 16. Ind AS 36 deals with: Revenue Recognition Borrowing Costs Impairment of Assets Intangible Assets None 17. An impairment loss is recognized when: Carrying amount exceeds recoverable amount Carrying amount is below historical cost Market value decreases temporarily None of the above None 18. Under Ind AS 37, a provision is recognized when: It is certain that an obligation exists It is probable that an outflow of resources will be required to settle the obligation The amount can be measured reliably Both (b) and (c) None 19. Which of the following is NOT considered a contingent liability under Ind AS 37? A lawsuit that is pending and its outcome is uncertain A probable tax dispute that is under investigation A warranty obligation for future product defects A guarantee given for a loan made to a third party None 20. Under Ind AS 36, recoverable amount is the higher of: Fair value less costs to sell Cost price Historical cost Net realizable value None 21. Ind AS 115 deals with the recognition of: Leases Employee Benefits Revenue from Contracts with Customers Financial Instruments None 22. Under Ind AS 115, the revenue recognition is based on the principle of: Transfer of control Accrual of expenses Realization of sales Matching expenses with revenue None 23. Which of the following is considered a contract with a customer under Ind AS 115? Agreements with employees Licensing agreements Purchase of fixed assets None of the above None 24. Under Ind AS 12, income tax expense is recognized in the: Income Statement Cash Flow Statement Statement of Changes in Equity Balance Sheet None 25. Which of the following is the correct formula to calculate deferred tax liability? Future tax liability - Current tax liability Temporary difference x Tax rate Temporary difference + Tax rate Total income - Tax payable None 26. Ind AS 21 provides guidance on accounting for: Foreign Exchange Employee Benefits Share-based Payments Business Combinations None 27. Which of the following is NOT part of the functional currency under Ind AS 21? The currency in which the entity’s primary economic environment operates The currency of the parent company The currency in which sales and purchases are made The currency in which most of the financing is denominated None 28. Foreign exchange differences arising from the translation of foreign operations are recognized in: Profit and Loss Statement Retained Earnings Other Comprehensive Income Liabilities None 29. Ind AS 23 deals with the capitalization of: Share-based Payments Borrowing Costs Investment Properties Revenue Recognition None 30. Borrowing costs that are directly attributable to the acquisition, construction, or production of a qualifying asset are: Expensed as incurred Capitalized as part of the cost of the asset Disclosed in the notes Ignored None 31. Ind AS 37 deals with the accounting of: Provisions and Contingent Liabilities Leases Revenue Recognition Employee Benefits None 32. Which of the following is NOT considered a provision under Ind AS 37? A present obligation arising from past events A probable outflow of economic benefits A reliable estimate of the obligation A contingent asset None 33. The treatment of events that occur after the reporting period but before the financial statements are authorized for issue is governed by: Ind AS 110 Ind AS 36 Ind AS 10 Ind AS 12 None 34. Adjusting events after the reporting period are events that: Provide evidence of conditions that existed at the end of the reporting period Only impact future periods Relate to operating results only Are not disclosed in the financial statements None 35. Under IAS 10, non-adjusting events after the reporting period are: Events that provide evidence of conditions that existed at the end of the reporting period Events that indicate the going concern assumption is no longer appropriate Events that do not require adjustment but may require disclosure Events that require adjustment of the financial statements None 36. Ind AS 19 deals with the accounting of: Employee Benefits Share-based Payments Revenue Recognition Business Combinations None 37. The liability for short-term employee benefits is recognized: When the employee provides the service At the end of the year When the benefits are paid Only when the payment is due None 38. Which of the following is NOT a type of employee benefit under Ind AS 19? Short-term employee benefits Post-employment benefits Other long-term benefits Equity-settled benefits None 39. Share-based payments are accounted for under: Ind AS 19 Ind AS 32 Ind AS 102 Ind AS 12 None 40. The measurement of share-based payments requires determining: The fair value of the equity instruments granted The cost of the services received The tax effect of the transaction The number of employees receiving the benefits None 1 out of 4 Great job on taking the INCOC Test! We appreciate your interest in test. Look out for results and future opportunities. Stay Connected !! Your quiz time is about to finish. Few seconds left. Time's upYou cannot switch tabs while taking this quiz!You are not allowed to switch tabs violation has been recorded.you cannot minimize full screen mode!You are not allowed to minimize full screen while taking this quiz, violation has been recorded.Access denied! 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