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 21, consolidated financial statements are prepared when: A company holds 20% or more voting power in another company A company has significant influence in another company A company controls another company A company has no significant influence in another company None 2. Minority interest in a subsidiary company is shown in: Profit and Loss Account Current liabilities Consolidated Balance Sheet under shareholders’ funds None of the above None 3. When preparing consolidated financial statements, intercompany profits are: Eliminated completely Eliminated to the extent of the parent company's share Added back to the consolidated reserves Ignored None 4. Goodwill in consolidation arises when: Cost of acquisition is greater than the fair value of net assets acquired Cost of acquisition is lesser than the fair value of net assets acquired Net assets exceed liabilities None 5. In consolidated financial statements, unrealized profit on intercompany inventory is: Added to reserve Deducted from consolidated profit Ignored Added to inventory value None 6. The objective of AS 1 (Disclosure of Accounting Policies) is to: Ensure consistency in financial statements Ensure proper disclosure of financial informatio Ensure comparability of financial statement All of the above None 7. As per AS 5, extraordinary items are: Items that occur regularly Unusual and infrequent items of income or expense Adjusted in reserves None of the above None 8. As per AS 18, related party transactions include transactions with: Key management personnel Subsidiaries Associates All of the above None 9. The objective of AS 29 (Provisions, Contingent Liabilities, and Contingent Assets) is to: Define provisions and contingent liabilities Specify the accounting treatment for provisions and contingent liabilities Specify the disclosure requirements for provisions and contingent liabilities All of the above None 10. As per AS 2, inventory is valued at: Cost Net realizable value Cost or net realizable value, whichever is lower Market value None 11. As per AS 11, exchange differences arising from foreign currency transactions are: Charged to Profit and Loss Account Adjusted in reserves Ignored Shown as contingent liabilities None 12. Foreign currency monetary items are translated at: Historical cost Average rate Closing rate None of the above None 13. Exchange differences on foreign currency borrowings for the acquisition of a fixed asset are: Expensed immediately Adjusted in the cost of the fixed asset Charged to revaluation reserve Ignored None 14. A non-monetary foreign currency item is measured at: Historical cost Closing rate Average rate None of the above None 15. Forward exchange contracts entered for trading purposes are accounted for as: A derivative instrument A Contingent liabilities A provision None of the above None 16. Government grants related to revenue are: Credited to the Profit and Loss Account Credited to a capital reserve Reduced from fixed assets Ignored None 17. Government grants related to specific fixed assets are: Credited to the Profit and Loss Account Reduced from the cost of the fixed assets Shown as a current liability Credited to reserves None 18. Non-monetary grants, such as land provided free of cost, are: Recorded at nominal value Recorded at fair value Ignored Recorded at revalued amount None 19. Government grants that become refundable are: Charged to capital reserve Adjusted against the carrying amount of the asset Shown as a liability Credited to Profit and Loss Account None 20. As per AS 12, government grants related to promoters' contribution are: Credited to the Profit and Loss Account Credited to Capital Reserve Adjusted against fixed assets Deferred to future years None 21. As per AS 17, a segment is reportable if: Its revenue exceeds 10% of the total revenue Its assets exceed 10% of the total assets Its results exceed 10% of the combined results of all segments Any of the above None 22. Segment revenue includes: Revenue earned from external customers Revenue earned from inter-segment transactions Both (a) and (b) None of the above None 23. Segment assets include: Directly attributable assets Allocable assets Both (a) and (b) None of the above None 24. Unallocated assets are shown: In segment reports only In the financial statements but not in segment reports In both financial statements and segment reports Only in notes to accounts None 25. As per AS 17, inter-segment transactions are: Eliminated in consolidated financial statements Shown at cost Shown at market price Recorded at an agreed price None 26. The accounting equation is: Assets = Liabilities + Revenue Assets = Liabilities + Equity Assets = Liabilities + Reserves None of the above None 27. As per AS 16, borrowing costs related to a qualifying asset are: Expensed immediately Capitalized until the asset is ready for use Ignored Written off over the life of the asset None 28. An accounting policy is selected based on: Prudence Consistency Substance over form All of the above None 29. Convertible debentures are shown in: Equity Non-current liabilities Current liabilities Both equity and liabilities None 30. Goodwill is generally valued based on: Average profit method Super profit method Capitalization method Any of the above None 31. Under the super profit method, goodwill is calculated as: Super profits × Number of years of purchase Super profits ÷ Average profits Total profits × Number of years of purchase Average profits × Number of years of purchase None 32. Goodwill is shown in the financial statements as: A current asset A reserve None of the above An intangible asset None 33. Under the hire purchase system, ownership of goods is transferred: At the time of the agreement On payment of the last installment At the time of delivery of goods At the time of the first installment None 34. In hire purchase accounting, the asset is recorded at: Cash price Hire purchase price Installment amount None of the above None 35. The hire purchase interest is treated as: Capital expenditure Revenue expenditure Deferred liability Intangible asset None 36. A contingent liability is: Shown in the Balance Sheet Disclosed as a note to accounts Neither recorded nor disclosed Recorded as a provision None 37. Liquidator’s remuneration is calculated on: Assets realized Payments to creditors Distribution to shareholders Any of the above depending on terms of appointment None 38. In liquidation, surplus capital after settlement of all liabilities is distributed to: Secured creditors Preference shareholders first, then equity shareholders Equity shareholders only Creditors in proportion to their dues None 39. Contributory’s liability arises in liquidation when: The company has surplus assets There is a shortfall in payment to creditors The company is solvent All liabilities are settle None 40. Statement of affairs in liquidation shows: Assets and liabilities at their book value Assets at realizable value and liabilities at expected settlement amount Both assets and liabilities at market value 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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