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 per AS 2, which of the following inventories is not valued at cost or net realizable value (whichever is lower)? Finished goods Work-in-progress Spare parts used in maintenance Raw materials None 2. Under AS 11, exchange differences on monetary items should be: Charged to the statement of profit and loss Adjusted in the cost of fixed assets Both (a) and (b) depending on the circumstances None of the above None 3. As per AS 16, borrowing costs include: Interest on loans Processing fees for loans Exchange differences to the extent they are treated as an adjustment to interest costs All of the above None 4. According to AS 19, a lease is classified as a finance lease if: The lessee will own the asset at the end of the lease term The lease term covers a major part of the asset’s useful life The present value of minimum lease payments is substantially equal to the asset’s fair value All of the above None 5. As per AS 10, a fixed asset should be derecognized on: Disposal When no future economic benefits are expected from its use or disposal Both (a) and (b) o None of the above None 6. When a new partner brings goodwill in cash, it is credited to: Goodwill Account Old Partners' Capital Accounts Profit and Loss Adjustment Account None of the above None 7. Revaluation profit in partnership accounts is shared among: o Old partners only New partners only All partners in the new profit-sharing ratio Old partners in the old profit-sharing ratio None 8. In the case of dissolution of a partnership, unrecorded liabilities are: Ignored Credited to Revaluation Account Debited to Realisation Account Debited to Capital Account None 9. The goodwill of a firm is valued using the capitalization method by: Capitalizing super-profits Capitalizing average profits Capitalizing actual profits Capitalizing future profits None 10. On admission of a new partner, the value of goodwill is shared by old partners in: Old profit-sharing ratio New profit-sharing ratio Equal ratio Sacrificing ratio None 11. In amalgamation in the nature of merger, the reserves of the transferor company are: Debited to Profit & Loss Account Transferred to the Amalgamation Adjustment Account Carried forward in the same form Written off None 12. The purchase consideration under amalgamation is calculated as per: Agreed-upon terms in the scheme Fair market value of assets Fair value of liabilities None of the above None 13. The excess of the purchase consideration over the net assets acquired in amalgamation is treated as: Goodwill Capital Reserve Amalgamation Reserve General Reserve None 14. When a company issues shares at a premium, the premium amount is credited to: Share Capital Account Securities Premium Reserve Account Profit and Loss Account General Reserve Account None 15. The maximum amount that can be utilized for payment of dividends from the Securities Premium Reserve is: Full amount 50% of the amount As per the company's discretion Securities Premium Reserve cannot be used for dividend payment None 16. Minority interest in consolidated financial statements represents: Total equity of the subsidiary Equity of non-controlling shareholders in the subsidiary Net assets of the parent company All of the above None 17. Goodwill in consolidation arises when: Cost of investment exceeds the net assets acquired Cost of investment is less than the net assets acquired Consolidated profits exceed standalone profits None of the above None 18. In consolidated financial statements, inter-company balances are: Added Eliminated Ignored None 19. When preparing consolidated financial statements, investments by the parent in the subsidiary are: Added to fixed assets Set off against the subsidiary’s equity Ignored Shown as goodwill None 20. Profit earned by a subsidiary after the parent’s acquisition date is: Credited to parent company’s capital Credited to parent’s share of profits Credited to minority interest Both (b) and (c) None 21. The yield method of share valuation is based on: Net assets of the company Expected rate of return Book value of the shares Market price of shares None 22. Under the super-profit method, goodwill is calculated as: Super-profits × Purchase years Total profits × Number of years Average profits × Purchase years None of the above None 23. The fair value of a share is determined by: Weighted average of intrinsic and yield values Market value of shares Book value of shares None of the above None 24. The book value method of valuation of shares considers: Net assets available to equity shareholders Expected dividend rate Future profits of the company All of the above None 25. When goodwill is valued using the annuity method, it is based on: Normal profits Super-profits discounted over a period of time Weighted average profits Net realizable value of goodwill None 26. Under branch accounting, a branch that maintains independent books of accounts is known as: Dependent branch Independent branch Foreign branch None of the above None 27. When the head office sends goods to a branch, it is recorded in the branch’s books at: Cost price Invoice price Selling price Market price None 28. In departmental accounting, inter-departmental transfers are recorded at: Cost price Market price Transfer price decided by the departments None of the above None 29. In hire purchase accounting, the ownership of goods is transferred to the buyer: At the time of sale On payment of all installments On the first installment None of the above None 30. Under the installment payment system, interest is calculated on: Cash price Outstanding balance Total installments None of the above None 31. In the case of loss of stock, the claim is based on: Cost of goods sold Net realizable value of stock Cost of stock destroyed Market value of stock destroyed None 32. The gross profit ratio for insurance claim purposes is computed based on: Past year’s gross profit Current year’s gross profit Weighted average gross profit None of the above None 33. In the case of loss of profit policy, the indemnity period starts from: Date of loss End of the financial year Date when sales resume None of the above None 34. In fire insurance claims, salvage is: Deducted from the claim amount Added to the claim amount Ignored Recorded as loss None 35. Under insurance, a claim will be reduced if: Policy value is higher than the stock value Policy value is lower than the stock value (under-insurance) Gross profit ratio is low None of the above None 36. Which of the following is not a type of reserve? Capital Reserve General Reserve Revaluation Reserve Provision for Bad Debts None 37. Preliminary expenses are shown in the balance sheet under: Shareholders' Funds Non-Current Liabilities Non-Current Assets Other Current Assets None 38. Capital redemption reserve is created for: Issue of bonus shares Redemption of debentures Redemption of preference shares Payment of dividends None 39. The objective of preparing a Cash Flow Statement is to: Determine the liquidity position of the company Compute profit earned during the year Reconcile cash balance Analyze financial position and cash movement None 40. The forfeiture of shares results in: Increase in general reserves Reduction in paid-up capital 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. 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!
