Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Corporate Financial Reporting Total Number of Question: 40 Time: 41 Minutes Please check your email after completion of test for result. All the best... Name Phone No Email Area Pin Code 1. Ind AS 38 deals with the accounting of: Property, Plant, and Equipment Intangible Assets Financial Instruments Employee Benefits None 2. The initial recognition of intangible assets requires: A reliable estimate of future economic benefits The ability to generate cash flows A purchase price or cost of development All of the above None 3. Which of the following is NOT considered an intangible asset under Ind AS 38? Patents Trademarks Goodwill Inventory None 4. Intangible assets with indefinite useful life should Amortized over their useful life Subject to annual impairment testing Expensed in the period of acquisition Expensed in the future period when used None 5. Ind AS 2 provides guidance on the accounting of: Inventories Financial Instruments Leases Employee Benefits None 6. Inventories should be measured at the lower of: Cost or selling price Cost or fair value Cost or net realizable value Net realizable value or acquisition None 7. Under Ind AS 2, the cost of inventories includes all of the following except: Purchase price Transportation costs Selling costs Conversion costs None 8. Under Ind AS 37, a contingent liability is: A present obligation arising from past events A potential obligation dependent on future events A liability that is always recognized in the balance sheet A probable liability that is confirmed None 9. Under IAS 37, provisions should be recognized when: There is a possible obligation. There is a present obligation and it is probable that an outflow of resources will be required. There is a remote obligation. The exact amount is known. None 10. A contingent asset is recognized in the financial statements only when: It is probable that an inflow of economic benefits will arise It is realized The asset’s value can be measured reliably It is highly probable None 11. Under Ind AS 10, events after the reporting period are classified into: Adjusting and Non-adjusting events Realized and Unrealized events Conditional and Unconditional events Minor and Major events None 12. A business combination is accounted for using the: Equity method Purchase method Fair value method Proportional consolidation method None 13. If a non-adjusting event occurs after the reporting period, it must be: Adjusted in the financial statements Disclosed in the notes if material Ignored Included in future periods None 14. Under Ind AS 110, control is defined as the power to: Cast a majority vote Direct the financial and operating policies Influence the management decisions Appoint members of the board None 15. In a business combination, goodwill is calculated as the: Difference between the purchase price and fair value of assets acquired Sum of fair value of assets acquired Purchase price less the fair value of liabilities acquired Fair value of shares issued for acquisition None 16. Which of the following is included in consolidated financial statements? Only the parent company’s assets Only the parent company’s liabilities The parent company and all its subsidiaries Only the parent company’s revenues None 17. Ind AS 102 governs the accounting of: Leases Financial instruments Share-based Payments Revenue recognition None 18. The fair value of share-based payments is recognized in: The income statement The balance sheet Shareholders’ equity Other comprehensive income None 19. Under Ind AS 109, a financial asset is classified at fair value through profit or loss (FVTPL) if: It is held for trading It is designated by the entity at initial recognition It is not held for collection of contractual cash flows All of the above None 20. Under Ind AS 109, a financial instrument can be classified as: Amortized cost Fair value through profit or loss Fair value through other comprehensive All of the above None 21. Ind AS 108 requires segment reporting based on: Business and geographical segments Income and expense segments Operating and financing segments Revenue from operations None 22. The disclosure of operating segments is required when: The segment exceeds 10% of the total revenues The segment is involved in significant business activities The segment has a significant operating result All of the above None 23. Under Ind AS 107, which of the following disclosures are required for financial instruments? Market risk Credit risk Liquidity risk All of the above None 24. Which of the following is NOT required to be disclosed under Ind AS 108 for segment reporting? The total revenue for each segment The liabilities of each segment The geographical location of each segment The cost of capital employed in each segment None 25. Under Ind AS 24, related party disclosures are required for: Key management personnel Subsidiaries and joint ventures Entities with significant influence All of the above None 26. Ind AS 33 deals with the accounting of: Earnings per Share Employee Benefits Business Combinations Financial Instruments None 27. The basic earnings per share (EPS) is calculated as: Net profit after tax / Weighted average number of shares Total income / Total number of shares Net profit before tax / Weighted average number of shares Earnings before interest and tax / Number of shares None 28. Which of the following is a cash flow from operating activities under the indirect method? Depreciation Borrowings Sale of fixed assets Dividend income None 29. Under Ind AS 7, which of the following is classified as a cash flow from investing activities? Interest paid on borrowings Dividend paid Purchase of fixed assets Payments to suppliers None 30. Which of the following is classified as a financing activity in the statement of cash flows? Payment of interest Repayment of loans Payment of salaries Purchase of equipment None 31. Ind AS 116 deals with the accounting of: Employee Benefits Leases Financial Instruments Earnings Per Share None 32. Under Ind AS 116, a lease is classified as: Operating lease or finance lease Finance lease or direct financing lease Finance lease or operating lease based on control Operating lease or sale-leaseback transaction None 33. A lessee recognizes a right-of-use asset and a lease liability when the lease term exceeds: 3 months 1 year 9 year 8 year None 34. Ind AS 111 provides guidance on accounting for: Joint Arrangements Business Combinations Revenue Recognition Financial Instruments None 35. A joint arrangement is classified as: A joint operation or a joint venture A joint agreement or a joint liability A cooperative agreement or a joint control agreement A shared liability or a joint business None 36. Ind AS 16 deals with the accounting of: Intangible Assets Property, Plant, and Equipment Financial Instruments Provisions None 37. The cost of property, plant, and equipment includes all of the following except: Purchase price Installation costs Borrowing costs during construction Routine maintenance None 38. The carrying amount of an asset should be reviewed at least at each: Reporting date Annual general meeting End of the quarter End of the accounting year None 39. Ind AS 37 requires a provision to be recognized when: The obligation is possible but not certain A present obligation exists The outflow of resources is unlikely The cost can be estimated reliably None 40. In the case of an impairment loss, the recoverable amount of an asset is the higher of: Fair value less cost to sell and value in use Carrying amount and value in use Fair value and cost to sell Recoverable value and future cash inflows 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. 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! 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