A company is facing a lawsuit from a customer. It is possible, but not probable, that the company will have to pay a settlement that management estimates to be ₹3,000,000. How would this fact be reported in the financial statements to be issued at the end of the current month?
₹3,000,000 in the Current Liability section
None because disclosure is not required
₹3,000,000 in the Long-Term Liability section
In a descriptive narrative in the footnote section
Total cash inflow in the operating section of the statement of cash flows should include which of the following?
Cash received from customers at the point of sale
Cash collections from customer accounts receivable
Cash received in advance of revenue recognition (unearned revenue)
All of these
If average total assets increase, but net income, net sales, and average stockholders' equity remain the same, what is the impact on the return on assets ratio?
Increases
Decreases
Remains the same
Cannot be determined without additional information
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The IIT Madras BS Financial Forensics (Financial Forensics) End Term paper sat on 30 Apr 2023, in the January 2023 term: 38 questions for 38 marks in 180 minutes. The first 3 questions are below. Sign in with Google — it is free — to see the whole paper with its answers and explanations, in learning mode or as a timed mock test.
| Feature | Financial Forensics End Term 30 Apr 2023 at a glance |
|---|---|
| Term | January 2023 term |
| Subject | Financial Forensics |
| Course code | BSMS4003 |
| Questions | 38 |
| Marks | 38 |
| Duration | 180 min |
| MCQ | 38 |
| Official paper | IIT M DEGREE ET1 EXAM QPE2 S1 30 Apr 2023 |
| Negative marking | No negative marking. |
| Updated |
