📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

  • google app store apple app store

    • Question

      A firm shows Net Profit ₹30 cr but Operating Cash Flow

      only ₹5 cr due to heavy receivables. Next year TL obligation ₹25 cr. What is the primary risk?
      A Profitability risk Correct Answer Incorrect Answer
      B Market risk Correct Answer Incorrect Answer
      C Liquidity & default risk Correct Answer Incorrect Answer
      D Accounting risk Correct Answer Incorrect Answer
      E Tax risk Correct Answer Incorrect Answer

      Solution

      Low cash flow → inability to service debt.

      Practice Next
      More Basic Accounting Concepts Questions
      ask-question