Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Financial ReportingTotal Number of Question: 40Time: 41 MinutesPlease check your email after completion of test for result.All the best... Name Phone No Email State 1. What is the primary objective of financial reporting? Compliance with tax laws Preparation of budgets Provide financial information useful for decision-making Ensure statutory compliance None 2. Which of the following is a qualitative characteristic of financial statements? Cost-effectiveness Comparability Volatility Flexibility None 3. The going concern assumption assumes that a business will continue to operate for at least: 1 year 2 years 5 years Indefinitely None 4. Ind AS 16 deals with: Revenue recognition Property, Plant, and Equipment Leases Financial Instruments None 5. Ind AS 115 replaces which of the following standards? Ind AS 11 and Ind AS 18 Ind AS 36 and Ind AS 38 Ind AS 17 None of the above None 6. Under Ind AS 21, which method is used for translating financial statements of a foreign operation? Temporal Method Current Rate Method Closing Rate Method Monetary/Non-Monetary Method None 7. Impairment of assets is governed by: Ind AS 2 Ind AS 16 Ind AS 36 Ind AS 105 None 8. Which of the following is not an example of financial liability? Trade Payables Bonds Payable Preference Shares (redeemable) Equity Shares None 9. Under Ind AS 2, inventory is valued at: Historical Cost Net Realizable Value Lower of Cost and Net Realizable Value Market Value None 10. Control in Ind AS 110 is determined based on: Ownership of 50% voting rights Rights to variable returns and ability to affect returns Influence over financial decisions All of the above None 11. Non-controlling interest is disclosed under: Equity Liabilities Assets Notes to accounts only None 12. Goodwill on consolidation is calculated as: Total assets minus total liabilities Purchase consideration minus net assets acquired Net assets acquired minus purchase consideration None of the above None 13. The core principle of Ind AS 115 is to recognize revenue: Over time When control is transferred to the customer When cash is received When the performance obligation is partially satisfied None 14. Under Ind AS 115, variable consideration is recognized if it is: Probable Measurable Reasonably estimable Substantially certain None 15. Ind AS 116 replaces which standard? Ind AS 115 Ind AS 17 Ind AS 36 Ind AS 38 None 16. Under Ind AS 116, lessees record lease liabilities at: Fair Value Present Value of Lease Payments Historical Cost Nominal Value None 17. Actuarial gains and losses under Ind AS 19 are recognized in: Profit or Loss Other Comprehensive Income Retained Earnings None of the above None 18. Which of the following is an example of a defined benefit plan? Provident Fund Gratuity Scheme Leave Encashment All of the above None 19. Which method of preparing cash flow statements is preferred under Ind AS 7? Indirect Method Direct Method Adjusted Balance Method None of the above None 20. Dividends paid are classified as: Operating Activities Financing Activities Investing Activities None of the above None 21. The pooling of interests method is applicable under: Purchase Method Merger Accounting Amalgamation in the nature of purchase None of the above None 22. Ind AS 103 deals with: Accounting Policies Financial Instruments Business Combinations Consolidated Financial Statements None 23. Under Ind AS 102, share-based payments are classified into: Cash-settled and equity-settled Operating and financing Fixed and variable None of the above None 24. Segment reporting under Ind AS 108 is based on: Industry classification Management’s internal reporting structure Regulatory requirements Size of the organization None 25. Provisions, contingent liabilities, and contingent assets are dealt with under: Ind AS 36 Ind AS 37 Ind AS 38 Ind AS 39 None 26. Ind AS 109 deals with: Accounting for Share-based Payments Financial Instruments Consolidated Financial Statements Provisions and Contingencies None 27. Fair value changes of financial liabilities classified as fair value through profit or loss (FVTPL) are recognized in: Other Comprehensive Income Profit or Loss Retained Earnings None of the above None 28. An embedded derivative is accounted for separately if: It is closely related to the host contract It significantly modifies the cash flows of the host contract It is a part of an equity instrument None of the above None 29. Deferred tax assets and liabilities are recognized based on the: Current Tax Rate Tax Rate that is substantively enacted Average Tax Rate None of the above None 30. Deferred tax is calculated using the: Current year’s profit or loss Temporary differences Permanent differences Carry-forward losses only None 31. Ind AS 12 is applicable to: Accounting for income taxes Recognition of provisions Revenue recognition Accounting for goodwill None 32. Basic EPS is calculated as: Net Profit / Weighted Average Number of Ordinary Shares Outstanding Net Profit + Tax / Total Shares Issued Net Profit / Total Shares Authorized None of the above None 33. Diluted EPS includes: Only issued equity shares Potential equity shares that are dilutive Contingent liabilities None of the above None 34. Under Ind AS 102, share-based payments settled in equity are measured at: Fair Value of Equity Instruments Granted Intrinsic Value Historical Cost Market Price at Grant Date None 35. The fair value of share-based payment transactions is determined on: Vesting Date Grant Date Exercise Date Reporting Date None 36. Provision is recognized when: There is a possible obligation There is a present obligation and a probable outflow of resources There is a future obligation None of the above None 37. Contingent liabilities are disclosed when: Outflow of resources is certain Outflow of resources is possible Outflow of resources is probable None of the above None 38. Ind AS 20 deals with: Employee Benefits Government Grants Revenue from Contracts with Customers Accounting Policies None 39. Government grants related to income are presented as: Deduction from liability Deferred income or credit to profit or loss Deduction from assets None of the above None 40. Grants related to assets are recognized as: Revenue directly Reduction in the carrying amount of the asset or deferred income Current liability None of the above 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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