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 correct option that indicates the arrangement of the given words in the order in which they appear in an English dictionary.
1. Sandal...
Select the option that represents the correct order of the given words as they would appear in an English dictionary.
1- Sandal
2- Sound
Select the correct option that indicates the arrangement of the given words in English dictionary order.
1. Monitor
2. Monarch
3. M...
In each of the following questions, four options are given. Out of these, three are alike in a certain way, while one is different. Identify the odd on...
Select the option that represents the correct order of the given words as they would appear in an English dictionary.
1- Rose
2- Random
Which of the following sequences represents the correct dictionary order of the following words?
1. Market
2. Machine
3. Manage
4. Margin
5. Marble
According to the reverse dictionary, which of the following words will come at the third position?
1- Bright
2- Bribe
3- Bri...
1. Repeal
2. Report
3. Republic
4. Remote
5. Repair
Select the option that represents the correct order of the given words as they would appear in an English dictionary.
1. Humble
2. Hi...
- Which of the following sequences represents the correct dictionary order of the following words?
1. Brave
2. Branch
3. Breeze
4...
