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. When an investor holds 20% to 50% of voting power, it is presumed to have: Significant influence Control Joint control No influence None 2. Ind AS 111 deals with: Joint arrangements Segment reporting Agriculture Business combinations None 3. Derivative instruments include: Forward contracts Options Swaps All of the above None 4. Hedge accounting is applied when: There is no economic relationship between the hedged item and the hedging instrument Risk management objective is met neffectiveness is high None of the above None 5. Expected credit losses are calculated on: Historical loss rates only Forward-looking information Both historical and forward-looking information None of the above None 6. Contract costs that relate directly to a specific contract are: Capitalized Expensed immediately Deferred until completion None of the above None 7. Which of the following is not a performance obligation? Goods supplied Services rendered Payments received in advance Constructed assets transferred None 8. Ind AS 19 classifies benefits into how many categories? 2 3 4 5 None 9. The discount rate used for actuarial valuations is typically: Government bond yield Corporate bond yield Weighted average cost of capital None of the above None 10. Research expenses under Ind AS 38 are: Capitalized Expensed as incurred Deferred Recognized only on completion None 11. Development costs are capitalized if: It is probable that future economic benefits will be generated Costs are reliably measurable The product is technically and commercially feasible All of the above None 12. Deferred tax arises from: Timing differences Temporary differences Permanent differences None of the above None 13. Deferred tax liabilities are recognized for: All taxable temporary differences All deductible temporary differences Only timing differences None of the above None 14. Cash flows from dividends received are classified as: Operating activities Investing activities Financing activities Either operating or investing activities None 15. Which of the following is not an operating activity? Payment to suppliers Sale of machinery Payment of salaries Cash received from customers None 16. Government grants are recognized when: There is reasonable assurance that conditions will be met Grants have been received Both A and B None of the above None 17. Grants related to income are shown in: The income statement as other income Balance sheet as a reduction of liability Statement of cash flows None of the above None 18. Ind AS 113 relates to: Fair Value Measurement Earnings Per Share Provisions and Contingencies Revenue Recognition None 19. Fair value measurement assumes the asset is sold in: The most advantageous market Any market A hypothetical market None of the above None 20. Which Ind AS governs segment reporting? Ind AS 7 Ind AS 108 Ind AS 101 Ind AS 115 None 21. Which of the following is not an enhancing qualitative characteristic? Comparability Understandability Reliability Verifiability None 22. The purpose of financial reporting is to provide information that is useful for: Government taxation Making economic decisions Internal management reports Regulatory compliance None 23. Faithful representation means: Information is accurate, neutral, and complete Information is verifiable Information is timely and relevant Information is presented in a structured format None 24. First-time adoption of Ind AS is governed by: Ind AS 101 Ind AS 102 Ind AS 103 Ind AS 104 None 25. Exemptions under Ind AS 101 include: Business combinations Leases Fair value as deemed cost All of the above None 26. Opening balance sheet for Ind AS adoption is prepared as at: Reporting date Transition date Prior year’s end date None of the above None 27. Ind AS 103 deals with: Leases Financial Instruments Business Combinations Borrowing Costs None 28. In consolidation, goodwill is calculated as: The excess of the fair value of net assets over the cost of acquisition. The cost of acquisition plus the fair value of net identifiable assets acquired The excess of the cost of acquisition over the fair value of net identifiable assets acquired. The book value of assets minus liabilities. None 29. Contingent consideration in a business combination is: Recognized only if payment is certain Recognized at fair value on acquisition date Ignored until paid None of the above None 30. Vesting period refers to the: Period during which the employee earns the right to the award Period after the shares are granted Lock-in period for shares None of the above None 31. If a share-based payment is cash-settled, the entity recognizes: Equity A liability Revenue None of the above None 32. Revenue is recognized over time if: Control of goods is transferred at a point in time Performance creates or enhances an asset that the customer controls Payments are received upfront None of the above None 33. The transaction price in a revenue contract includes: Fixed consideration only B Variable consideration if it is highly probable Interest income Both fixed and uncertain amounts None 34. Provisions are recognized when: There is a past event and an outflow of resources is probable There is an obligation but no payment expected Payment is made None of the above None 35. Contingent assets are disclosed when: Inflows are certain Inflows are probable Inflows are possible but uncertain None of the above None 36. The net interest on a defined benefit liability is calculated using: Discount rate applied to the net defined benefit liability/asset Expected rate of return on plan assets Current interest rate None of the above None 37. Curtailments refer to: A reduction in defined benefit plans due to restructuring or downsizing An increase in benefits Temporary suspension of contributions None of the above None 38. Impairment of goodwill is tested at the level of: Individual assets Cash-generating units (CGUs) Consolidated financial statements None of the above None 39. Value in use is determined using: Discounte cash flows Market price of the asse Historical cost None of the above None 40. Convertible bonds are: Only equity A compound financial instrument Only debt 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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