Indian Institute of Technology Madras
BS Degree Programme · Examination & Study Paper
Financial Forensics
The four financial statements
Official Paper
Examination Instructions & Guidelines
- Solve on notebook/paper first before checking solutions.
- MCQ: Exactly 1 option is correct. Negative marking applies.
- Scientific calculator allowed for all calculations.
- Official answer key is sealed at the end of this sheet.
- Q1MCQ1 Mark·Choose one option
Which of the following best describes the balance sheet?
- AIt includes the amount of revenues minus expenses for the period.
- BIt includes three primary categories of cash flows.
- CIt provides information pertaining to a company's economic resources and the sources of financing for those resources.
- DIt provides information pertaining to a company's liabilities for a period of time.
- Q2MCQ1 Mark·Choose one option
Which of the following would not be found on the statement of cash flows?
- ACost flow from manufacturing activities.
- BCash flow from operating activities.
- CCash flow from investing activities.
- DCash flow from financing activities.
- Q3MCQ1 Mark·Choose one option
Which of the following equations best describes the income statement?
- AAssets − Liabilities = Stockholders' Equity
- BNet income = Revenues + Expenses
- CNet income = Revenues − Expenses
- DRetained earnings = Net Income + Dividends
- Q4MCQ1 Mark·Choose one option
A calendar year reporting company preparing its annual financial statements should use the phrase "At December 31, 2024" in the heading of which financial statement(s)?
- AOn all of the required financial statements.
- BOn the income statement only.
- COn the income statement and balance sheet, but not the statement of cash flows.
- DOn the balance sheet only.