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. Which of the following is NOT a qualitative characteristic of financial statements? Relevance Reliability Materiality Prudence None 2. Under Ind AS, which standard governs the presentation of financial statements? Ind AS 7 Ind AS 1 Ind AS 115 Ind AS 16 None 3. Which of the following is NOT part of the primary financial statements? Balance Sheet Cash Flow Statement Notes to Accounts Statement of Changes in Equity None 4. Ind AS 36 deals with: Revenue Recognition Borrowing Costs Impairment of Assets Intangible Assets None 5. What is the minimum interest rate used for measuring lease liabilities under Ind AS 116? Risk-free rate Implicit rate of interest in the lease Market rate of borrowing Prime lending rate None 6. Which Ind AS deals with accounting policies, changes in accounting estimates, and errors? Ind AS 8 Ind AS 10 Ind AS 21 Ind AS 23 None 7. An error in prior period accounts should be corrected by: Adjusting current period profit or loss Adjusting the opening balance of retained earnings Adjusting the next period’s financial statements None of the above None 8. Which of the following is an example of a change in accounting estimate? Depreciation method change Useful life revision Change in the inventory valuation method All of the above None 9. Which Ind AS deals with Consolidated Financial Statements? Ind AS 110 Ind AS 28 Ind AS 27 Ind AS 31 None 10. Minority interest is reported in consolidated financial statements as part of: Liabilities Equity Revenue None of the above None 11. Which of the following methods is used for accounting for investments in associates? Equity method Proportionate consolidation method Cost method Pooling of interest method None 12. A parent company is exempted from preparing consolidated financial statements if: It is a subsidiary of another entity It meets the definition of an investment entity Both (a) and (b) None of the above None 13. Ind AS 109 primarily deals with: Financial Instruments Revenue Recognition Employee Benefits Income Taxes None 14. Which of the following is an equity instrument? Bond Convertible debenture Preference share with mandatory redemption Ordinary share None 15. Derivatives are classified as: Financial assets Financial liabilities Either (a) or (b) depending on the nature None of the above None 16. Which Ind AS deals with Business Combinations? Ind AS 103 Ind AS 113 Ind AS 101 Ind AS 12 None 17. Goodwill arising in a business combination is tested for impairment: Annually Quarterly Every five years Only when there is an indication of impairment None 18. In a business combination, the acquirer recognizes assets and liabilities at: Fair value Carrying amount Replacement cost None of the above None 19. Ind AS 102 deals with: Employee benefits Share-based payment Revenue from contracts Borrowing costs None 20. The expense for equity-settled share-based payments is measured at: Fair value of shares granted Market price on grant date Intrinsic value of shares None of the above None 21. Ind AS 19 covers: Borrowing Costs Employee Benefits Insurance Contracts Revenue Recognition None 22. Which Ind AS is applied for inventory valuation? Ind AS 2 Ind AS 12 Ind AS 18 Ind AS 115 None 23. Revenue is recognized under Ind AS 115 based on: Transfer of control Cash receipt Signing of the contract Delivery of goods None 24. Which of the following is a cash equivalent? Bank overdraft Fixed deposit with maturity of 3 months Gold investment None of the above None 25. Ind AS 21 deals with: Leases Effects of Changes in Foreign Exchange Rates Borrowing Costs Financial Reporting in Hyperinflationary Economies None 26. Which of the following methods is used to amortize financial assets under Ind AS 109? Effective Interest Rate Method Straight Line Method Written Down Value Method None of the above None 27. Impairment of financial assets under Ind AS 109 is assessed based on: Historical loss model Expected Credit Loss model Incurred loss model None of the above None 28. A financial liability is derecognized when: It is refinanced The obligation is discharged, cancelled, or expired Any of the above None 29. Under Ind AS 109, equity instruments can be measured at: Amortized cost Fair value through profit or loss (FVTPL) Fair value through other comprehensive income (FVOCI) Both (b) and (c) None 30. Which of the following is NOT a condition for significant influence under Ind AS 28? Representation on the board of directors Participation in policy decisions Power to veto resolutions Material transactions between the investor and investee None 31. In preparing consolidated financial statements, intra-group transactions are: Eliminated entirely Partially adjusted Recorded separately Disclosed in notes only None 32. In the consolidated financial statements, goodwill is: Capitalized and amortized Recognized and tested for impairment annually Recognized only when internally generated None of the above None 33. A joint arrangement where parties have rights to the net assets of the arrangement is termed as: Joint operation Joint venture Associate Subsidiary None 34. Contingent liabilities assumed in a business combination are measured at: Nominal value Fair value Amortized cost Replacement cost None 35. Which of the following is NOT included in the consideration transferred in a business combination? Cash paid Contingent consideration Direct acquisition costs Equity instruments issued None 36. In a reverse acquisition, the entity that issues securities is generally the: Acquiree Acquirer Joint venture None of the above None 37. Ind AS 115 requires revenue to be recognized when: Goods are dispatched Customer pays the consideration Control is transferred to the customer Legal title is transferred None 38. Under Ind AS 116, a lease liability is initially measured at: Fair value of the leased asset Present value of lease payments Amortized cost of the asset None of the above None 39. Short-term leases under Ind AS 116 can be accounted for using: Straight-line expense recognition Capitalization of the lease Amortization of right-of-use asset Both (a) and (c) None 40. Ind AS 19 classifies employee benefits into all EXCEPT: Short-term benefits Termination benefits Post-employment benefits Share-based benefits None 1 out of 4 Great job on taking the INCOC Test! 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