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16 Sep 2022, 01:50
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C
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Difficulty:
25%
(medium)
Question Stats:
80% (01:28) correct
20%
(01:33)
wrong
based on 196
sessions
History
Date
Time
Result
Not Attempted Yet
XL’s sales in the last quarter were the highest when considering sales in the past six quarters. Nonetheless, at the beginning of this quarter, the financial situation was so drastic that the company had to delay paying employees’ salaries by a week.
Which one of the following, if true, helps to explain why the company’s financial situation was weak despite good revenue in the last quarter?
(A) The revenue had not shown any sign of increase in the last year.
(B) Because of high revenue, more tax was paid in the last quarter than in any other of the past six quarters.
(C) The payment structure demanded by XL is such that the revenues are realized almost three months after the completion of sales.
(D) The employees were informed that there will be a delay in salary disbursement owing to cash flow issues.
(E) The salary of each employee was increased to distribute profits earned during the last quarter.
Which one of the following, if true, helps to explain why the company’s financial situation was weak despite good revenue in the last quarter?
(A) The revenue had not shown any sign of increase in the last year.
(B) Because of high revenue, more tax was paid in the last quarter than in any other of the past six quarters.
(C) The payment structure demanded by XL is such that the revenues are realized almost three months after the completion of sales.
(D) The employees were informed that there will be a delay in salary disbursement owing to cash flow issues.
(E) The salary of each employee was increased to distribute profits earned during the last quarter.
16 Sep 2022, 03:57
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Bunuel
What if XL is not getting paid upfront after its sale? In that scenario paying the employee will be tough.
(A) The revenue had not shown any sign of increase in the last year: Why discuss last year? Irrelevant. Reject
(B) Because of high revenue, more tax was paid in the last quarter than in any other of the past six quarters: Even if more tax is paid, there has to be profit wrt to the revenue, that's why high tax is being paid. Reject
(C) The payment structure demanded by XL is such that the revenues are realized almost three months after the completion of sales: That's our option. Last month XL did great but its benefit will be seen after 3 months. Correct
(D) The employees were informed that there will be a delay in salary disbursement owing to cash flow issues: It explains the plan or action but not the reason. Reject
(E) The salary of each employee was increased to distribute profits earned during the last quarter: It is exactly opposite to what the argument says. Reject
Answer is C
28 Mar 2025, 15:08
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