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 19 requires the recognition of actuarial gains and losses in: Profit and loss account Other comprehensive income Financial statements Statement of cash flows None 2. Which of the following is not a defined benefit plan? Gratuity plan Pension plan Provident fund plan Employee share option plan None 3. Which of the following is NOT a requirement of Ind AS 102 for share-based payments? The fair value of the share options granted must be measured The share options must be exercised before the vesting period ends The expense must be recognized over the vesting period The fair value must be based on market conditions None 4. Under Ind AS 19, which of the following benefits is a short-term employee benefit? Post-employment benefits Long-term benefits Sick leave Share-based payments None 5. Ind AS 19 requires the employer to account for the cost of an employee benefit over the: Vesting period Employment period Service period Useful life of the asset None 6. Ind AS 115 deals with the recognition of: Revenue from contracts with customers Income taxes Leases Employee benefits None 7. Revenue from the sale of goods is recognized when: The customer places an order The goods are delivered to the customer The price is fixed The customer pays for the goods None 8. Under Ind AS 115, revenue is recognized when the control of the good or service is transferred to the customer, which is defined as: The ability to resell the goods The ability to use the goods The ability to prevent others from using the goods The physical possession of the goods None 9. For revenue recognition, when there are multiple performance obligations in a contract, the transaction price should be allocated based on: The expected costs to complete the contract The fair value of each performance obligation The market price of each performance obligation The total revenue divided by the number of performance obligations None 10. Under Ind AS 115, a contract with a customer is recognized when: There is an agreement between the parties There is a valid invoice The customer makes a payment The product is delivered None 11. Ind AS 1 deals with: Presentation of Financial Statements Business Combinations Share-based Payments Employee Benefits None 12. Which of the following is NOT a part of a complete set of financial statements under Ind AS 1? Balance Sheet Statement of Cash Flows Auditor's Report Statement of Profit and Loss None 13. The principal objective of financial statements is to provide information about the financial position, performance, and: Efficiency of the company’s operations Cash flows of the entity Key management compensation Financial risk of the entity None 14. Under Ind AS 1, the presentation of financial statements should include a comparative statement for at least: One year Two years Three years Five years None 15. A company must prepare a statement of cash flows under Ind AS 7 using which method for operating activities? Direct method Indirect method Either method Both methods are equally acceptable None 16. Ind AS 110 deals with the accounting for: Consolidated Financial Statements Business Combinations Joint Ventures Leases None 17. The purchase method is used in accounting for: Joint ventures Business combinations Financial instruments Employee benefits None 18. In a business combination, the acquirer must recognize all identifiable assets acquired and liabilities assumed at: Fair value Carrying value Cost Book value None 19. In preparing consolidated financial statements, the income and expenses of the subsidiary are included from: The acquisition date The financial year start The parent’s inception The transaction date None 20. The non-controlling interest in a consolidated financial statement is recognized at: Cost Fair value Carrying amount Book value None 21. Ind AS 21 deals with the accounting of: Foreign Currency Transactions and Translation Employee Benefits Income Taxes Business Combinations None 22. Foreign currency transactions are translated into the functional currency using the: Exchange rate at the date of the transaction Exchange rate at the end of the reporting period Exchange rate on the settlement date Average exchange rate over the period None 23. Gains and losses from foreign currency transactions are recognized in the: Balance sheet Income statement Cash flow statement Equity None 24. Ind AS 21 applies to the translation of financial statements from a foreign subsidiary into the: Consolidated financial statements Separate financial statements Income statement only Cash flow statement None 25. Under Ind AS 21, the closing rate method is applied when translating the financial statements of a foreign operation that uses: The local currency as functional currency The parent’s currency as functional currency A hyperinflationary currency A stable foreign currency None 26. Ind AS 116 deals with the accounting of: Employee Benefits Leases Financial Instruments Earnings Per Share None 27. In a lease, if the lease term is for most of the useful life of the asset, it is classified as a: Operating lease Finance lease Financial asset Non-leased asset None 28. For a lessee, a lease liability is initially measured at: Fair value of the leased asset The present value of the lease payments The total lease payments over the lease term The market value of the leased asset None 29. Which of the following statements is true regarding operating leases under Ind AS 116? The lessee recognizes the right-of-use asset and lease liability The lessee does not recognize the right-of-use asset and lease liability The lessor recognizes a lease receivable The lease payments are recognized as income in the lessee’s profit and loss None 30. Under Ind AS 116, the right-of-use asset is initially recognized at: Fair value Historical cost The present value of future lease payments The total lease payments None 31. Ind AS 109 deals with the accounting of: Revenue Recognition Leases Financial Instruments Employee Benefits None 32. Which of the following financial instruments is classified as a financial asset under Ind AS 109? Trade payable Equity instrument of another entity Provisions for liabilities Trade receivable None 33. Under Ind AS 109, financial assets are measured at: Cost Amortized cost or fair value Market value Nominal value None 34. Which of the following is NOT classified as a financial liability under Ind AS 109? Trade payables Bonds payable Equity instruments Bank overdrafts None 35. The classification of a financial instrument under Ind AS 109 is based on its: Legal form Purpose of acquisition Risk of the instrument Instrument’s contractual cash flow characteristics1 None 36. Ind AS 12 deals with the accounting for: Revenue Recognition Leases Income Taxes Business Combinations None 37. Deferred tax assets are recognized when: It is probable that taxable profit will be available There is a permanent difference It will reduce the tax liability in future periods It is impossible to measure tax liabilities None 38. Which of the following statements is correct regarding deferred tax liabilities under Ind AS 12? They are always recognized They arise due to temporary differences They are not recognized in the financial statements They arise from a permanent difference None 39. Which of the following is an example of a temporary difference under Ind AS 12 Different accounting and tax treatments of a revenue transaction Unrealized gains from the sale of assets Revaluation of property Differences between income statement and tax returns None 40. Income tax expense under Ind AS 12 is recognized in the: Statement of financial position Statement of profit and loss Statement of changes in equity Statement of cash flows 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. 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