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. Accounting Standard 4 deals with: Depreciation Accounting Events Occurring After the Balance Sheet Date Provisions, Contingent Liabilities, and Contingent Assets Borrowing Costs None 2. As per AS-2, which of the following is excluded from the cost of inventory? Conversion costs Trade discounts Purchase price Transportation costs None 3. Which accounting standard prescribes the treatment of investments? AS-10 AS-13 AS-2 AS-12 None 4. As per AS-5, prior period items should be disclosed: Separately in the profit and loss account As an adjustment to reserves In the notes to accounts Need not be disclosed None 5. According to AS-9, revenue from services is recognized when: Cash is received Service is completed An agreement is signed The contract is commenced None 6. Goodwill is calculated based on which of the following methods? Weighted Average Profit Super Profit Capitalization All of the above None 7. In case of retirement of a partner, the retiring partner’s share of goodwill is: Credited to the goodwill account Adjusted among remaining partners in their profit-sharing ratio Debited to the revaluation account Credited to the retiring partner’s loan account None 8. When a new partner is admitted, the revaluation account is: Opened to record the revaluation of assets and liabilities Used to record goodwill only Used to adjust profit-sharing ratios Not required at all None 9. Under Companies Act, 2013, shares can be issued at: Par Premium Discount (under certain conditions) All of the above None 10. Which of the following cannot be used for redemption of preference shares? Securities premium Fresh issue of equity shares Capital reserve Profits available for dividend None 11. Provision for taxation is shown under: Current liabilities Contingent liabilities Provisions under current liabilities None of the above None 12. Profit prior to incorporation is treated as: Capital reserve Revenue reserve Miscellaneous expenditure Prepaid income None 13. In amalgamation in the nature of purchase, excess of purchase consideration over net assets is: Debited to capital reserve Credited to goodwill Credited to revaluation reserve Debited to goodwill None 14. Pooling of interest method is used in: Internal reconstruction Amalgamation in the nature of merger Amalgamation in the nature of purchase External reconstruction None 15. Under AS-14, the transferor company’s reserves are: Transferred to the transferee company Written off Adjusted in the revaluation reserve Not transferred None 16. Minority interest is shown in: Notes to accounts Equity section of consolidated balance sheet Liabilities section of consolidated balance sheet Assets section of consolidated balance sheet None 17. Inter-company profits in inventory are: Adjusted in consolidated reserves Eliminated in full during consolidation Credited to profit and loss account Ignored completely None 18. A holding company has 75% of shares in its subsidiary. The remaining shares are owned by: The government The holding company’s directors Minority shareholders Financial institutions None 19. Cash flow from investing activities includes: Sale of fixed assets Interest paid Dividend paid Net profit from operations None 20. Interest received on loans is classified under: Operating activities Financing activities Investing activities Cash and cash equivalents None 21. The reduction of share capital is accounted for by: Creating a revaluation reserve Crediting the capital reserve Crediting the profit and loss account Writing off accumulated losses None 22. Under internal reconstruction, the balance of the capital reduction account is transferred to: Share capital account Goodwill account Capital reserve General reserve None 23. Which of the following is NOT a method of internal reconstruction? Alteration of share capital Writing off past losses Amalgamation with another company Compromise with creditors None 24. The term “Independent Branch” refers to: A branch not dependent on the head office for finance A branch maintaining its complete set of books A branch that d loss accounts None of the above None 25. In foreign branches, closing stock is converted at: Opening rate Average rate Closing rate Historical rat None 26. Head Office expenses charged to branch should be debited to: Profit and loss account Branch account General reserve None of the above None 27. Provisioning for NPAs is governed by: SEBI guidelines Income Tax Act, 1961 RBI guidelines Companies Act, 2013 None 28. In the balance sheet of a bank, bills discounted and purchased are shown under: Advances Investments Contingent liabilities Loans and advances None 29. Rebate on bills discounted is: Shown as an asset in the balance sheet Shown as a liability in the balance sheet Adjusted in the profit and loss account Ignored during preparation of financial statements None 30. In life insurance business, premiums due but not received are shown as: Current liabilities Current assets Non-current liabilities Capital reserves None 31. Revenue account of an insurance company includes: Appropriations Operating expenses and incomes Non-operating incomes Cash flows None 32. Which account is prepared for determining the profit or loss of a general insurance company? Revenue account Profit and loss account Profit and loss appropriation account None of the above None 33. As per AS-22, deferred tax is: The difference between taxable income and accounting income The difference between current tax and advance tax The timing difference between accounting and tax profits None of the above None 34. As per AS-11, exchange differences on repayment of liabilities for acquiring fixed assets are: Charged to profit and loss account Adjusted in the cost of fixed assets Adjusted in the revaluation reserve Ignored completely None 35. Fair value changes in financial assets classified as FVTPL (Fair Value Through Profit or Loss) are: Adjusted in reserves Recognized in profit and loss account Ignored in financial statements Shown as a liability None 36. Which of the following is NOT a derivative financial instrument? Forward contract Debentures Futures contract Swap contract None 37. Which of the following is NOT an intangible asset? Patents Trade receivables Goodwill Trademark None 38. Under the Companies Act, 2013, depreciation is calculated based on: Written down value method only Straight line method only Useful life of assets None of the above None 39. Which of the following is classified as a financing activity in the cash flow statement? Payment of dividends Purchase of investments Interest on fixed deposits Sale of machinery None 40. Contingent liabilities are disclosed: In the profit and loss account In the balance sheet as a liability In the notes to accounts Not disclosed at all 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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