CA Foundation - Business Laws & Regulatory Framework previous year questions (PYQ)

Strict accrual-based recognition ensuring revenue matches incurred expenses for the accounting period (Indian Contract Act 1872: Nature of Contracts, Offer, Acceptance, Consideration and Free Consent)

Cash-basis omission of unbilled accrued liabilities without footnote disclosure

Arbitrary capitalization of regular operational expenses without future economic benefit

Off-balance sheet concealment of material contingent liabilities

Interest coverage ratio and net debt-to-EBITDA within prudential regulatory thresholds (Indian Contract Act 1872: Nature of Contracts, Offer, Acceptance, Consideration and Free Consent)

Gross uncollateralized receivables divided by overdue accounts payable

Speculative inventory holding periods ignoring market depreciation

Nominal face value of authorized share capital without considering equity