Question
ABC Ltd. reported net profits of ₹12 lakh, but their
cash from operations was only ₹3 lakh. The company made large purchases of inventory and extended high credit to customers. Which aspect of the financial statements does this situation highlight and what should an analyst infer from it?Solution
Accrual accounting recognizes income and expenses when incurred, not when cash is received or paid. Hence, even if the profit is high, cash may be tied up in inventory or receivables, leading to low operating cash flow. This distinction is crucial in financial statement analysis.
Select the set of numbers that is similar to the following set.
(10, 127, 12)
“Checkmate” is related to “Chess” in the same way as “Birdie” is related to ____.
In a certain language, if SCIENCE is coded as 8-24-18-22-13-24-22, then what would be the code for HISTORY?
Select the option that is related to the fifth number in the same way as the second number is related to the first number and the fourth number is relat...
Select the option that is related to the third cluster in the same way the first cluster is related to the second cluster.
ADAPT : 42 :: BRAVE : ?
In the following question, select the related word pair from the given alternatives.
Wolves: Pack
If SIT = 19920 and SITE = 199205, then SIGHT =
Four number-pairs have been given, out of which three are alike in some manner and one is different. Select the number-pair that is different.
If 47 # 56 = 159 and 28 # 38 = 104, then 35 # 49 = ?
Select the option that is related to the third number in the same way as the second number is related to the first number, and the sixth number is rela...
