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. Ind AS 12 applies to: Deferred taxes only Current taxes only Both current and deferred taxes Taxes on revenue only None 2. Deferred tax liabilities arise when: Taxable income exceeds accounting income Accounting income exceeds taxable income Revenue is recognized earlier for tax purposes None of the above None 3. Under Ind AS 1, which of the following is NOT required in the statement of changes in equity? Total comprehensive income Effects of retrospective application Dividends declared during the period Earnings per share (EPS) None 4. Which of the following items is NOT included in Other Comprehensive Income (OCI)? Changes in revaluation surplus Actuarial gains/losses on defined benefit plans Dividends paid Exchange differences on foreign operations None 5. Cash flows from interest and dividends received are classified under: Operating activities Investing activities Financing activities Both (a) and (b) depending on the entity's policy None 6. Which of the following is NOT a component of financial statements under Ind AS? Statement of Financial Position Management Discussion and Analysis (MD&A) Statement of Cash Flows Statement of Changes in Equity None 7. Which of the following is the underlying assumption in the preparation of financial statements? Materiality Going concern Prudence Conservatism None 8. Which is NOT a fundamental qualitative characteristic of financial information as per the conceptual framework? Faithful representation Comparability Relevance Understandability None 9. What is the primary objective of financial statements? Ensure compliance with laws Facilitate taxation Provide financial information to stakeholders for decision-making Protect creditors' interest None 10. Fair value is defined as: Historical cost of an asset Price received to sell an asset or paid to transfer a liability in an orderly transaction Cost of replacement of an asset None of the above None 11. Ind AS 16 applies to: Intangible assets Property, Plant, and Equipment Investment properties Financial assets None 12. Under Ind AS 38, intangible assets are initially measured at: Fair value Replacement cost Historical cost Present value of future cash flows None 13. Depreciation is charged on assets based on: Useful life Fair value Historical cost Revaluation surplus None 14. Which of the following is NOT capitalized as part of the cost of a PPE asset? Installation costs Borrowing costs Costs of regular maintenance Site preparation costs None 15. A financial asset is classified as amortized cost if: It is held for trading The objective is to collect contractual cash flows The objective is to collect cash flows and sell the asset None of the above None 16. Ind AS 32 deals with: Financial Instruments: Presentation Revenue Recognition Consolidation of Financial Statements Borrowing Costs None 17. The equity component of a convertible debenture is calculated using: Fair value of the equity component Residual approach Amortized cost method Effective interest rate method None 18. The five-step model for revenue recognition under Ind AS 115 starts with: Determine the transaction price Identify performance obligations Identify the contract with the customer Recognize revenue None 19. Revenue is recognized over time under Ind AS 115 if: Control of the asset is transferred at a point in time The entity’s performance creates or enhances an asset that the customer control The customer pays in advance None of the above None 20. Which of the following entities is NOT required to prepare consolidated financial statements? A listed company An unlisted company with no subsidiaries A parent company with only dormant subsidiaries A company exempted under specific regulations None 21. In a step acquisition, goodwill is calculated based on: Fair value of previously held interest Historical cost of previously held interest Market value of the parent entity None of the above None 22. Ind AS 36 requires impairment testing of: Tangible assets only Intangible assets only Both tangible and intangible assets Current liabilities None 23. Recoverable amount of an asset is the: Higher of fair value less costs to sell and value in use Lower of fair value less costs to sell and historical cost Value in use Fair value less costs to sell None 24. Lease term under Ind AS 116 includes: Non-cancellable period only Non-cancellable period and optional renewal periods if reasonably certain to be exercised Only cancellable periods None of the above None 25. Under Ind AS 116, initial direct costs of a lessee are: Expensed immediately Included in the right-of-use asset Included in lease liability None of the above None 26. Which of the following must be disclosed in financial statements under Ind AS 1? Accounting policies Key management personnel compensation Details of all transactions All of the above None 27. Which of the following is presented as other comprehensive income (OCI)? Profit from sale of inventory Dividends received Unrealized gains on revaluation of property Depreciation expense None 28. Which Ind AS deals with borrowing costs? Ind AS 23 Ind AS 2 Ind AS 7 Ind AS 20 None 29. Ind AS 40 deals with: Inventory PPE Investment Property Financial Instruments None 30. A current liability is classified as such if it is expected to be settled within: 3 months 6 months 12 months 24 months None 31. Foreign currency transactions are translated at: Historical rate Average rate Closing rate for balance sheet items and transaction date rate for income statement items Spot rate only None 32. Ind AS 10 deals with: Revenue Recognition Events after the Reporting Period Accounting Policies Impairment of Assets None 33. According to Ind AS 21, exchange differences arising on monetary items should be: Capitalized Expensed in the period incurred Adjusted in equity Adjusted in OCI if eligible None 34. Ind AS 41 applies to: Agriculture Intangible Assets PPE Inventory None 35. Under Ind AS 20, government grants related to assets should be: Recognized as income immediately Deferred and amortized over the useful life of the asset Deducted from the cost of the asse Recognized as liability None 36. Performance obligations under Ind AS 115 are satisfied when: Control is transferred to the customer Risks and rewards are transferred Payment is received Contract is signed None 37. Variable consideration under Ind AS 115 is measured using: Probability-weighted expected value method Maximum amount likely to be received Straight-line allocation method FIFO method None 38. Lease liabilities under Ind AS 116 exclude: Fixed payments Variable lease payments dependent on an index Penalties for termination if reasonably certain to terminate Variable lease payments linked to sales None 39. The right-of-use asset under Ind AS 116 is initially measured at: Fair value Amortized cost Initial lease liability plus initial direct costs None of the above None 40. Control in Ind AS 110 is established when the investor has: Voting rights exceeding 25% Power, exposure to variable returns, and ability to affect returns Ownership of at least 50% shares 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. 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!