Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Advanced AccountingTotal Number of Question: 40Time: 41 MinutesPlease check your email after completion of test for result.All the best... Name Phone No Email State 1. AS 2 deals with: Revenue Recognition Inventories Cash Flow Statements Consolidation of Financial Statements None 2. AS 9 applies to: Construction contracts Revenue recognition Investments Depreciation None 3. Which AS prescribes accounting for amalgamation? AS 10 AS 14 AS 21 AS 26 None 4. Borrowing costs eligible for capitalization are dealt with in: AS 16 AS 10 AS 2 AS 26 None 5. Government grants related to fixed assets are accounted as per: AS 19 AS 12 AS 13 AS 14 None 6. Which AS deals with the effects of changes in foreign exchange rates? AS 1 AS 10 AS 11 AS 13 None 7. AS 21 deals with: Consolidated financial statements Segment reporting Employee benefits Related party disclosures None 8. Depreciation is calculated as per which AS? AS 5 AS 10 AS 6 (now part of AS 10) AS 16 None 9. AS 19 pertains to: Consolidation Financial Instruments Leases Segment Reporting None 10. Under AS 26, internally generated goodwill is: Recognized as an asset Not recognized as an asset Shown as a liability Adjusted against retained earnings None 11. Partnership Accounts 11. Goodwill is valued when: A new partner is admitted A partner retires A partnership is dissolved All of the above None 12. The ratio used to distribute goodwill when a partner retires is: Gaining Ratio Sacrificing Ratio Old Profit-Sharing Ratio None of the above None 13. Revaluation account is prepared to: Distribute accumulated reserves Adjust assets and liabilities to their current value Settle the retiring partner’s account Record goodwill None 14. On dissolution, unpaid partner’s loan is settled: Before external liabilities After external liabilities Along with partner’s capital None of the above None 15. Sacrificing ratio is calculated at the time of: Admission of a new partner Retirement of a partner Dissolution of the firm Conversion of partnership into a company None 16. Premium on redemption of debentures is shown under: Reserves and Surplus Non-Current Liabilities Other Comprehensive Income Current Liabilities None 17. Unclaimed dividends are shown under: Non-Current Liabilities Current Liabilities Reserves and Surplus Other Income None 18. Forfeited shares are recorded in: Securities Premium Account Share Capital Account Forfeited Shares Account None of the above None 19. The capital redemption reserve is created on: Buyback of shares Issue of bonus shares Forfeiture of shares Rights issue None 20. Bonus shares can be issued from: Revaluation Reserve Capital Redemption Reserve Securities Premium Both (b) and (c) None 21. The limit for managerial remuneration under the Companies Act, 2013 is: 10% of net profits 11% of net profits 5% of net profits None of the above None 22. What is the minimum application amount for shares as per the Companies Act, 2013? 2% of nominal value 5% of nominal value 25% of nominal value No such requirement None 23. Profit on the issue of forfeited shares is transferred to: Securities Premium General Reserve Capital Reserve Profit and Loss Account None 24. Which account is credited when debentures are issued at a discount? Debenture Account Discount on Debentures Account Securities Premium Account None of the abov None 25. The maximum limit of buyback of shares is: 10% of paid-up capital and free reserves 15% of paid-up capital and free reserves 25% of paid-up capital and free reserves No limit None 26. Minority interest is calculated on: Share capital of subsidiary Profits of the subsidiary Net assets of subsidiary All of the above None 27. Which method is used for consolidation under AS 21? Equity Method Line-by-Line Consolidation Proportionate Consolidation Cost Method None 28. Intercompany transactions are: Ignored in standalone accounts Eliminated in consolidated accounts Adjusted in the parent’s accounts only Not disclosed None 29. Goodwill in consolidation arises when: Purchase consideration > Net assets Purchase consideration < Net assets Purchase consideration = Net assets None of the above None 30. What is the method of accounting for joint ventures in consolidated financial statements? Line-by-Line Consolidation Equity Method Cost Method None of the above None 31. Cash flow statements are mandatory for companies as per: AS 3 AS 7 AS 15 AS 17 None 32. Provision for bad debts is shown under: Current Liabilitie Deduction from Sundry Debtors General Reserve Miscellaneous Expenses None 33. For contingent liabilities, the correct treatment is: Recognized in the Balance Sheet Recorded in the Profit & Loss Account Disclosed in Notes to Accounts Ignored entirely None 34. Cash Flow from Operating Activities excludes: Interest Paid Dividend Paid Depreciation Income Tax Paid None 35. Sinking fund is used for: Bonus Shares Issue Redemption of Debentures Day-to-Day Operations None of the above None 36. Contingent assets are: Recorded in the Balance Sheet Disclosed in Notes to Accounts Not recorded or disclosed Recognized when realized None 37. Which of the following is a non-cash expense? Salaries Depreciation Interest Purchases None 38. Preliminary expenses are: Capitalized Written off over a period of time Shown as a liability Ignored None 39. Which type of lease is recorded as an asset by the lessee? Operating Lease Financial Lease Sales-Type Lease None of the above None 40. Net realizable value is considered for inventory valuation under: AS 2 AS 10 AS 18 AS 26 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. 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