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. The expense related to ESOPs is calculated based on: Fair value of the shares on the grant date Intrinsic value of the shares Market value of the shares None of the above None 2. Vesting period in ESOPs is the period: Between grant date and exercise date Between grant date and vesting date Between vesting date and exercise date None of the above None 3. When ESOPs are exercised, the company: Issues new shares Buys back shares None of the above None 4. If an employee leaves before the vesting period, the ESOPs: Are forfeited Are exercisable immediately Can be carried forward indefinitely Are transferred to other employee None 5. The ESOP expense is debited to: General Reserve Share Premium Account Profit and Loss Account None of the above None 6. In liquidation, payment to unsecured creditors is made: After secured creditors and preferential creditors Before secured creditors Before preferential creditors Simultaneously with secured creditors None 7. A contributory in the context of liquidation refers to: An employee of the company A creditor of the company A person liable to contribute to the assets of the company A director of the company None 8. Capital reduction in internal reconstruction is carried out to: Issue bonus shares Write off accumulated losses Increase the value of fixed assets Both (b) and (c) None 9. The order of payment during liquidation is governed by: Articles of Association Companies Act Liquidator’s discretion Creditors’ agreement None 10. Preferential creditors include: Secured creditors Employee wages for a specified period Equity shareholders Debenture holders None 11. A bank’s balance with RBI is classified as: Current assets Cash and cash equivalents Non-current assets Other liabilities None 12. Non-performing assets (NPA) are loans: Where the interest or principal is overdue for more than 90 days Fully paid by the borrower Secured by fixed deposits None of the above None 13. Provisions for standard assets are classified as: Contingent liabilities Current liabilities Appropriation of profits None of the above None 14. Rebate on bills discounted is shown as: Current liability Provision Reserve Income None 15. The provision for doubtful advances is created by: Debiting the Profit and Loss Account Crediting the Profit and Loss Account Reducing the balance sheet total None of the above None 16. Capital employed in a business is calculated as: Total assets – Current liabilities Fixed assets – Depreciation Share capital + Reserves Total liabilities – Current liabilities None 17. An interim dividend is paid: Only at the end of the financial year Any time during the financial year After finalizing accounts To preference shareholders only None 18. Redeemable preference shares are redeemed out of: General Reserve Fresh issue of shares Capital Redemption Reserve All of the above None 19. If a fixed asset is revalued upwards, the increase is credited to: General Reserve Revaluation Reserve Profit and Loss Account Depreciation Reserve None 20. In a company, reserves created out of capital profits include: General Reserve Capital Redemption Reserve Securities Premium Reserve All of the above None 21. In partnership accounts, goodwill is adjusted at the time of: Admission of a partner Retirement of a partner Death of a partner All of the above None 22. The profit-sharing ratio is calculated to adjust: Goodwill Revaluation of assets and liabilities Reserves and profits/losses All of the above None 23. The revaluation account is prepared to: Record revaluation of assets and liabilities Distribute profits of the firm Adjust goodwill Record admission of a new partner None 24. In the case of dissolution, unrecorded liabilities are: Debited to the realization account Credited to the realization account Ignored Transferred to the capital accounts None 25. When a partner retires, the retiring partner’s share in goodwill is: Paid in cash Debited to the remaining partners in their gaining ratio Credited to revaluation account Ignored None 26. As per AS 14, the consideration for amalgamation is recorded: At fair value At book value At intrinsic value None of the above None 27. The method used for recording amalgamation under "pooling of interests" is: Purchase method Merger method Absorption method Consolidation method None 28. Under the "purchase method" of amalgamation, excess consideration over net assets is: Adjusted as goodwill Credited to the revaluation reserve Adjusted as capital reserve Both (a) and (c) depending on circumstances None 29. If the transferee company pays lesser consideration than net assets acquired, the difference is: Debited to goodwill Credited to capital reserve Adjusted to revaluation reserve Treated as revenue income None 30. Amalgamation in the nature of purchase is: A merger of equals A one-sided transaction Based on pooling of interests None of the above None 31. The cash flow from operating activities is determined using: Net profit adjusted for changes in working capital and non-cash items Net cash from financing activities Change in equity and liabilities Adjustments in fixed assets None 32. As per AS 3, cash flows from investing activities include: Cash received from issuing shares Cash paid for purchasing fixed assets Dividends paid Increase in working capital None 33. The repayment of a bank loan is classified as: Operating activity Investing activity Financing activity None of the above None 34. Cash flows related to purchase and sale of marketable securities are categorized as: Operating activities Investing activities Financing activities None of the above None 35. Depreciation is added back to profit while calculating cash flows because: It is a cash expense It reduces profit but does not affect cash flow It represents a source of funds It increases liabilities None 36. Premium received in advance by an insurance company is classified as: An asset A liability Income Expense None 37. Claims outstanding in insurance company accounts are: Current liabilities Current assets Operating expenses Adjusted against reserves None 38. In life insurance business, bonus in reduction of premium is: Shown as an expense in Revenue Account Adjusted as a liability Credited to the Profit and Loss Account Adjusted in premium income None 39. The unexpired risk reserve for general insurance business is: 100% for fire and marine insurance 50% for motor insurance 50% for other insurance business 100% for miscellaneous insurance None 40. Commission paid on reinsurance ceded is: Deducted from reinsurance premium Added to reinsurance premium Shown as an expense in the Revenue Account Shown as income in the Revenue Account 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. 1 2 3 4 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! To begin the quiz, please grant this quiz access to your camera.Time is Up!Time is Up!
