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 3, interest received on loans is classified under: Operating activities o Investing activities Financing activities None of the above None 2. As per AS 9, revenue is recognized when: It is probable that economic benefits will flow to the entity The goods or services are delivered/rendered The revenue can be measured reliably All of the above None 3. As per AS 13, current investments are valued at: Historical cost Market value Cost or fair value, whichever is lower None of the above None 4. According to AS 22, deferred tax liability arises when: Taxable income is higher than accounting income Taxable income is lower than accounting income Both are equal None of the above None 5. Provision for doubtful debts as per AS 29 is classified as: Contingent liability Provision Reserve None of the above None 6. Under AS 1, financial statements should be prepared following the assumption of: Conservatism Going concern Accrual Prudence None 7. As per AS 17, a reportable segment is identified based on: Nature of products or services Geographical areas Quantitative thresholds for segment revenue, segment result, or segment assets o (d) All of the above All of the above None 8. According to AS 26, intangible assets are amortized over: Indefinite period 5 years Their useful life, not exceeding 10 years Their useful life, subject to assessment annually None 9. Impairment loss as per AS 28 is: The excess of carrying amount over recoverable amount The excess of fair value over carrying amount Depreciation charged during the yea None of the above None 10. As per AS 24, a discontinuing operation is classified if: A major line of business is discontinued It has a distinct operating structure There is a formal plan to dispose of it All of the above None 11. On retirement of a partner, goodwill is shared among the continuing partners in: Old profit-sharing ratio New profit-sharing ratio Gaining ratio Equal ratio None 12. In a partnership, drawings of partners are debited to: Profit and Loss Account Partners’ Current Account Capital Account Both (b) and (c) None 13. Revaluation loss is shared by partners in: Old profit-sharing ratio New profit-sharing ratio Equal ratio Capital ratio None 14. On dissolution of a partnership, the realization account is prepared to: Calculate the profit or loss on realization Adjust unrecorded liabilities Adjust goodwill All of the above None 15. If a partner becomes insolvent, his deficiency is borne by other partners: Equally o (b) In capital ratio In profit-sharing ratio In profit-sharing ratio In the ratio of contributions None 16. Pooling of interests method is applicable for: Amalgamation in the nature of purchase Amalgamation in the nature of merger Both (a) and (b) None of the above None 17. Purchase consideration does not include: Cash paid to shareholders of the transferor company Debentures issued to the transferor company’s shareholders Liabilities assumed by the transferee company Goodwill paid in cash None 18. In amalgamation, reserves that are not transferred to the transferee company are: Statutory reserves Free reserve Revaluation reserves Secret reserves None 19. When assets are taken over at a value higher than their book value, the difference is credited to: Amalgamation Adjustment Account Goodwill Account Revaluation Account None of the above None 20. Statutory reserves in amalgamation are: Eliminated Transferred to General Reserve Maintained in the transferee company’s books None of the above None 21. Capital reserve in consolidated accounts arises when: Cost of investment is lower than net assets acquired o (b) Cost of investment is higher than net assets acquired Cost of investment is higher than net assets acquired Minority interest exceeds parent company interest None of the above None 22. The pre-acquisition profits of a subsidiary are treated as: Revenue profits Capital profits Minority interest only General reserves None 23. While consolidating, unrealized profit in stock is adjusted against: Cost of Goods Sold Consolidated reserves Minority interest Consolidated profits None 24. The parent company’s share of a subsidiary’s loss is: Ignored djusted against goodwill Debited to consolidated profit and loss account Adjusted against goodwill Shown under reserves None 25. Inter-company dividends are: Added to consolidated reserves Eliminated in consolidation Credited to minority interest None of the above None 26. For a bonus issue, the company must have: Sufficient reserves Sufficient cash balance Shareholders’ approval Both (a) and (c) None 27. A provision differs from a reserve as it: Is not an appropriation of profit Can be used for dividends Is optional in nature None of the above None 28. Sinking Fund is created for: Redemption of debentures Payment of dividends Distribution of profits None of the above None 29. Calls in arrears are shown in the balance sheet as: Deduction from share capital Current liabilities Other current assets None of the above None 30. Prepaid expenses are classified as: Current assets Current liabilities Non-current assets Reserves None 31. Depreciation on fixed assets is charged to: Profit and Loss Account Revaluation Reserve General Reserve Profit and Loss None of the above None 32. Depreciation is a process of: Asset valuation Cost allocation Revenue recognition Profit appropriation None 33. The sum-of-years-digits method of depreciation is classified as: Straight-line method Accelerated depreciation method Declining balance method Fixed percentage method None 34. Under the Written Down Value method, depreciation is: Equal every year Charged on reducing balance of the asset Charged on the original cost of the asset None of the above None 35. As per AS 10, an asset is recognized at: Market value Cost Cost or fair value, whichever is lower Net realizable value None 36. Loss on sale of fixed assets is transferred to: General Reserve Profit and Loss Account Depreciation Reserve Capital Reserve None 37. As per AS 6 (revised and merged into AS 10), depreciation is: Optional for fixed assets Charged systematically over the useful life of the asset Charged only when the market value of an asset declines Based solely on the replacement cost of the asset None 38. When revalued assets are disposed of, the revaluation surplus is transferred to: General Reserve Profit and Loss Account Capital Reserve Revaluation Reserve None 39. Provision for depreciation is shown in the balance sheet as: A deduction from the related fixed asset A current liability A reserve under shareholder funds A contingent liability None 40. An intangible asset that is amortized is: Land Goodwill Building Machinery 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!
