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. The accrual basis of accounting requires: Recognizing revenue when received Recognizing expenses when incurred Both A and B None of the above None 2. Materiality in financial reporting refers to: Completeness of information Relevance of information based on its size or nature Use of historical cost None of the above None 3. Which of the following is not a fundamental qualitative characteristic? Relevance Faithful Representation Comparability None of the above None 4. The amortized cost of a financial asset is calculated using: Current market rate Effective interest rate Nominal interest rate None of the above None 5. Under Ind AS 32, a financial instrument is classified as equity if: It contains an obligation to deliver cash It provides ownership interest without a repayment obligation It is mandatorily redeemable None of the above None 6. Impairment of financial assets is measured using: Expected Credit Loss Model Historical Loss Model Net Realizable Value Model Fair Value Model None 7. Under Ind AS 115, revenue is recognized when: Risks and rewards are transferred Control over goods or services is transferred The payment is received Contract is signed None 8. A performance obligation is satisfied over time if: Customer simultaneously receives and consumes benefits Goods are delivered at a point in time Control is retained by the entity None of the above None 9. Minority interest is now referred to as: Non-controlling Interest Non-entity Interest Subsidiary Share None of the above None 10. Under Ind AS 110, a parent entity prepares consolidated financial statements unless: It is a wholly-owned subsidiary It meets specific exemption criteria Both A and B None of the above None 11. PPE is initially measured at: Fair Value Cost Market Value None of the above None 12. Subsequent measurement of PPE can be under: Cost Model or Revaluation Model Revaluation Model Only Cost Model Only None 13. Depreciation is based on: Useful life of the asset Market value of the asset Replacement cost None of the above None 14. Under Ind AS 116, the lessee recognizes: An asset and a liability Only a liability Only an asset Neither asset nor liability None 15. The right-of-use asset is initially measured at: Fair Value Present Value of Lease Payments Lease Payments Made None of the above None 16. Past service cost arises when: Employee benefits change retroactively Actuarial assumptions change Employee resigns None of the above None 17. Which of the following is classified as a short-term benefit? Pension Gratuity Annual Leave None of the above None 18. A qualifying asset is: Any asset An asset that takes a substantial period to get ready for use or sale Any financial instrument None of the above None 19. Borrowing costs directly attributable to the acquisition of a qualifying asset are: Expensed immediately Capitalized Deferred to future years None of the above None 20. Ind AS 38 governs: Intangible Assets Tangible Assets Financial Instruments None of the above None 21. Intangible assets are initially measured at: Cost Fair Value Replacement Value Market Value None 22. Goodwill is an example of: Tangible Asset Intangible Asset Liability Provision None 23. The recoverable amount is the higher of: Fair Value and Cost Fair Value less Costs of Disposal and Value in Use Cost and Carrying Amount None of the above None 24. An asset is impaired when: Carrying amount exceeds recoverable amount Fair value exceeds cost Carrying amount is equal to recoverable amoun None of the above None 25. Cash flows from the sale of PPE are classified as: Operating Activities Investing Activities Financing Activities None of the above None 26. Interest paid is classified as: Operating or Financing Activity Only Financing Activity Only Operating Activity None of the above None 27. Ind AS 24 relates to: Related Party Disclosures Share-based Payments Earnings Per Share Cash Flow Statements None 28. The purpose of Ind AS 8 is to ensure: Consistency in accounting policies Disclosure of accounting estimates Both A and B None of the above None 29. Agriculture is governed by: Ind AS 41 Ind AS 38 Ind AS 16 None of the above None 30. Biological assets are measured at: Fair Value less Costs to Sell Historical Cost Market Value None of the above None 31. Which of the following is not an element of financial statements as per the Framework? Assets Liabilities Transactions Equity None 32. Which assumption requires that transactions are recorded in the currency of the primary economic environment? Going Concern Accrual Basis Monetary Unit Consistency None 33. As per Ind AS, comprehensive income includes: Profit or loss only Other comprehensive income only Both profit or loss and other comprehensive income None of the above None 34. Which of the following costs are included in the cost of PPE? Purchase price Import duties Directly attributable costs All of the above None 35. Residual value of an asset is: Estimated value at the end of its useful life Current market value Historical cost minus accumulated depreciation None of the above None 36. The revaluation surplus is transferred to: Profit or loss Retained earnings Revaluation reserve General reserve None 37. Lease term includes: Non-cancellable period Period covered by extension options if reasonably certain to extend Period covered by termination options if reasonably certain not to terminate All of the above None 38. Lease payments exclude: Fixed payments Variable lease payments dependent on an index or rate Costs for maintenance and insurance Residual value guarantees None 39. Short-term leases under Ind AS 116 are defined as leases with a term of: Less than 6 months Less than 12 months 24 months Indefinite term None 40. Equity method is used to account for investments in: Subsidiaries Joint ventures and associates Financial instruments Biological assets 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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