Case- XYZ ltd an IT company is not an MNC based in the USA.
ABC ltd an IT company is an MNC based in Germany.
The Germany company wants takeover the USA company.When the
ABC ltd scans XYZ ltd company's financial statements it
shows profit (no fraud or infringement was made in accounts
of XYZ ltd).But the finance department of ABC ltd says the
XYZ ltd financial statements show various losses.
Question- Cite four reasons why XYZ ltd shows loss, while it
has made profit?
Answer Posted / prashant
Equity Debt ratio could be very less or may be Debt of XYZ
company could be higher then eq.
Company can show profit in the books of account in this
case. bt this case it is not good to invest. this may be the
reason.
| Is This Answer Correct ? | 1 Yes | 6 No |
Post New Answer View All Answers
Who is co-operative bank regulator?
What is Subsidiary Company?
Are you an extrovert or an introvert?
Share your views on Plastic currency?
Define E- Commerce?
What details does the deposit register cover?
What Are Bearer Debentures?
What is the full form of SLR and its meaning?
What are mutual funds? Why are mutual funds better than stocks?
Who are our major competitors and what differences do you notice in our Banking products?
What is proprietary ratio? What are its components? What does it indicate?
Share your views on Business Cycles?
I want the sample question paper of po exam of sbi?
compare cumulative & non-cumulative shares
What do you know about NITI Aayog?