Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Corporate Financial Reporting Total Number of Question: 40 Time: 41 Minutes All the best... Kind Regards CMA Madhuri Kashyap Profile: Click Here! Name Phone No Email Area Pin Code 1. Ind AS 109 deals with the accounting of: Financial Instruments Share-based Payments Leases Employee Benefits None 2. Which of the following is classified as a financial instrument under Ind AS 109? Cash Accounts payable Investment in bonds All of the above None 3. Under Ind AS 109, financial assets can be classified into: Held to maturity and available for sale Amortized cost, fair value through profit or loss, and fair value through other comprehensive income Current and non-current All of the above None 4. Which of the following is a hedge accounting strategy under Ind AS 109? Fair value hedge Cash flow hedge Net investment hedge All of the above None 5. The effectiveness of a hedge is assessed by: Market prices Volatility of the hedge instrument The relationship between the hedged item and the hedging instrument All of the above None 6. Ind AS 12 deals with the accounting of Income Taxes Employee Benefits Financial Instruments Revenue Recognition None 7. Deferred tax assets arise when: The carrying amount of an asset exceeds its tax base The tax rate changes Future taxable amounts are expected to reduce taxable income The company earns a profit None 8. Which of the following is not a temporary difference under Ind AS 12? Depreciation on fixed assets Provisions for doubtful debts Accrued interest income Share capital None 9. Ind AS 12 requires the recognition of a deferred tax liability when: There is an excess of tax depreciation over accounting depreciation There is an increase in the value of assets There is an obligation to pay taxes immediately There is a permanent difference None 10. The measurement of deferred tax is based on the: Expected future tax rates Carrying value of the asset Nominal tax rate Market value of the asset None 11. Ind AS 40 deals with the accounting of: Investment Properties Intangible Assets Employee Benefits Provisions None 12. An investment property is defined as property held for: Sale in the ordinary course of business Rental income or capital appreciation Use in production Personal use None 13. Ind AS 113 provides guidance on: Impairment of Assets Fair Value Measurement Business Combinations Consolidated Financial Statements None 14. The fair value of an asset is defined as: The historical cost less accumulated depreciation. The price that would be received to sell an asset in an orderly transaction between market participants. The present value of future cash flows The original purchase price. None 15. Which of the following is NOT a characteristic of fair value? It represents a price that would be received to sell an asset It reflects a market participant’s assumptions It is based on the seller's own cost of acquisition It is an exit price None 16. Ind AS 103 deals with the accounting of: Leases Financial Instruments Business Combinations Share-based Payments None 17. Under Ind AS 103, goodwill is recognized in a business combination as: The fair value of the identifiable net assets acquired The difference between the acquisition cost and fair value of identifiable assets The book value of acquired assets The fair value of liabilities assumed None 18. When preparing consolidated financial statements, a parent should eliminate: Transactions with subsidiaries Transactions with other shareholders Only inter-group balances Transactions with joint ventures None 19. In a business combination, non-controlling interest is recognized at: Fair value Book value Proportional share of net assets Historical cost None 20. Under Ind AS 110, a subsidiary is defined as an entity over which the parent has: Control Significant influence Joint control Ownership None 21. Ind AS 19 deals with the accounting of: Employee Benefits Share-based Payments Financial Instruments Provisions None 22. Which of the following is NOT a type of employee benefit under Ind AS 19? Short-term benefits Post-employment benefits Share-based payments Revenue recognition benefits None 23. In a defined contribution plan, the employer’s obligation is limited to: A fixed contribution to a fund Providing post-retirement benefits Ensuring a guaranteed return All of the above None 24. Ind AS 102 governs the accounting of: Share-based Payments Employee Benefits Financial Instruments Business Combinations None 25. The cost of share-based payments is recognized over: The vesting period The service period The exercise period The payout period None 26. Under Ind AS 108, segment reporting includes information about: Geographical areas Business segments Both a and b None of the above None 27. Ind AS 24 requires disclosure of related party transactions for which of the following? Parent company and subsidiaries Key management personnel Joint ventures All of the above None 28. Ind AS 107 requires disclosures related to: Financial instruments Related party transactions Income taxes Property, plant, and equipment None 29. Ind AS 1 prescribes the presentation of financial statements and requires entities to present: A balance sheet A statement of profit and loss A statement of cash flows All of the above None 30. Which of the following statements is true regarding financial statement presentation under Ind AS? A single set of financial statements is required for all entities Presentation is based on International Financial Reporting Standards (IFRS) Ind AS requires companies to present quarterly financial statements Financial statements should be presented annually unless otherwise required None 31. Ind AS 37 deals with the accounting of Business Combinations Income Taxes Provisions, Contingent Liabilities, and Contingent Assets Financial Instruments None 32. 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 33. Which of the following is not a provision under Ind AS 37? Warranty obligations Restructuring costs Legal claims Future capital expenditures None 34. A contingent liability is disclosed in the financial statements when: The obligation is probable The obligation is certain The obligation is remote The obligation is possible but not probable None 35. Which of the following is true about events after the reporting period under Ind AS 10? Events occurring after the reporting period should always be disclosed Events after the reporting period are only adjusted if they provide additional evidence regarding conditions existing at the end of the reporting period Events after the reporting period have no impact on financial statements Events after the reporting period should only be disclosed if they relate to transactions outside of the normal course of business None 36. Earnings per share is calculated using the: Weighted average number of shares outstanding Total number of shares issued Total revenue Net income available to shareholders None 37. Dividends declared by a company are recognized as: A liability when declared An expense when declared Revenue when declared An asset to the shareholders None 38. Which of the following is true regarding treasury stock? It represents shares issued and held by the company It represents shares bought back by the company It represents shares owned by shareholders It is a form of debt issued by the company None 39. The return on equity (ROE) is calculated as: Net income / Shareholder's equity Net income / Total assets Earnings before interest and tax / Shareholder's equity Net income / Total liabilities None 40. Which of the following statements regarding share capital is true? Share capital is the total amount a company receives from issuing shares Share capital is recorded as an expense on the income statement Share capital represents loans obtained by the company Share capital is classified as a contingent liability None 1 out of 4 Great job on taking the INCOC Test! 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