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 method is used to consolidate a joint operation? Equity Method Line-by-line Proportionate Consolidation Full Consolidation None of the above None 2. Ind AS 113 defines fair value as: Cost less accumulated depreciation Price received in an orderly transaction between market participants Intrinsic value of an asset Book value None 3. Impairment of financial assets under Ind AS 109 is determined using: Lifetime expected credit loss model for all financial assets 12-month expected credit loss for assets without significant credit deterioration Historical loss model None of the above None 4. Which financial instruments are measured at FVOCI under Ind AS 109? Equity instruments held for trading Equity instruments designated irrevocably by the entity Derivatives Held-to-maturity investments None 5. Impairment loss on a cash-generating unit (CGU) is allocated first to: Goodwill PPE on a pro-rata basis Intangible assets other than goodwill All assets equally None 6. Which of the following is NOT considered in determining the value in use? Cash flow projections Discount rate Market value Inflation rate assumptions None 7. Ind AS 19 categorizes employee benefits into: Short-term, termination, post-employment, and other long-term benefits Fixed-term, variable-term, and termination benefits Compensation, termination, and bonus plans None of the above None 8. Actuarial gains and losses under Ind AS 19 are: Recognized in P&L Deferred over the service period Recognized in OCI Ignored None 9. Ind AS 1 requires disclosures related to: Sources of estimation uncertainty Basis of preparation Both (a) and (b) Neither (a) nor (b) None 10. Which of the following is NOT an operating cash flow activity under Ind AS 7? Collection from customers Payment to suppliers Purchase of machinery Payment of wages None 11. Borrowing costs eligible for capitalization under Ind AS 23 include: Interest on borrowings for general purposes Interest on funds specifically borrowed for a qualifying asset Interest on overdue payments to suppliers None of the above None 12. Capitalization of borrowing costs ceases when: The asset is substantially ready for intended use The asset is put to use Borrowing is repaid Construction stops temporarily None 13. Acquisition method of accounting for business combinations is governed by: Ind AS 103 Ind AS 113 Ind AS 38 Ind AS 110 None 14. Contingent consideration in a business combination is measured at: Historical cost Fair value Net realizable value Replacement cost None 15. Bargain purchase gain arises when: Purchase consideration exceeds net assets acquired Net assets acquired exceed purchase consideration Goodwill is impaired None of the above None 16. Ind AS 40 requires investment properties to be measured initially at: Historical cost Fair value Replacement cost Market value None 17. Subsequent measurement of investment property can be at: Cost model only Fair value model only Either cost or fair value model None of the above None 18. Ind AS 105 applies to: Non-current Assets Held for Sale and Discontinued Operations Impairment of Assets Revenue Recognition Financial Instruments None 19. Ind AS 2 requires inventories to be valued at: Cost Net realizable value Lower of cost and net realizable value Fair value None 20. Under Ind AS 2, cost of inventories excludes: Import duties Abnormal waste Conversion costs Transportation costs None 21. Ind AS 107 requires disclosure of: Fair value measurements Risk management policies Credit risk, liquidity risk, and market risk All of the above None 22. A financial liability is classified as current when: It is expected to be settled in more than 12 months The entity has an unconditional right to defer settlement beyond 12 months Settlement is due within 12 months None of the above None 23. Defined benefit plans are measured using: Historical cost Present value of defined benefit obligation Expected cost None of the abov None 24. Current service cost under Ind AS 19 is: Recognized in OCI Recognized in P&L Deferred to the next period Capitalized as an asset None 25. Contract costs that are incremental and expected to be recovered are: Recognized as an expense immediately Deferred and amortized over the contract term Written off to OCI Capitalized only if above 10% of contract value None 26. Under Ind AS 115, the transaction price includes: Fixed consideration only Both fixed and variable consideration Contingent consideration only None of the above None 27. An impairment loss under Ind AS 36 is reversed when: The recoverable amount of the asset increases The asset is sold Goodwill impairment is reversed None of the above None 28. Which of the following assets is NOT tested annually for impairment? Goodwill Intangible assets with indefinite life PPE with finite life Intangible assets under development None 29. Purchase consideration for a business combination excludes: Contingent consideration Acquisition-related costs Fair value of shares issued Cash paid to acquire assets None 30. Which of the following is a characteristic of a reverse acquisition? Legal acquirer is the accounting acquirer Accounting acquirer is different from the legal acquirer No goodwill is recognized None of the above None 31. Which of the following items is eliminated in preparing consolidated financial statements? Dividend declared by subsidiary Intra-group sales Unrealized profit on inventory All of the above None 32. Which method is used for accounting for associates under Ind AS 28? Full consolidation Equity method Cost method None of the above None 33. Under Ind AS 7, which activity includes cash received from issuing shares? Operating Investing Financing None of the above None 34. Interest paid is classified as: Operating activity only Financing activity only Either operating or financing based on entity’s accounting policy None of the above None 35. The statement of changes in equity does NOT include: Total comprehensive income Changes in accounting policies Reconciliation of liabilities Dividends paid None 36. Which is NOT an element of financial statements as per the conceptual framework? Assets Liabilities Revenue Equity instruments None 37. Ind AS 24 deals with: Accounting for Taxes elated Party Disclosures Accounting Policies Events after Reporting Period None 38. Which is NOT a related party transaction under Ind AS 24? Sale of goods to a joint venture Payment of dividends to shareholders Purchase of PPE from a subsidiary Loans advanced to key management personnel None 39. Under Ind AS 37, a provision is recognized when: It is certain that an obligation exists It is probable that an outflow of resources will be required to settle the obligation The amount can be measured reliably Both (b) and (c) None 40. Contingent liabilities are: Recognized in financial statements Disclosed in financial statements unless remote Ignored if not probable 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!