What will a higher debt-equity ratio indicate? Post category:Accountancy Reading time:1 mins read SOLUTION It will indicate a risky financial position from the long-term point of view, as it indicates that a higher proportion of funds invested in the business is provided by long-term lenders. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostQuick ratio of a company is 1.5: 1. State giving reason whether the ratio will improve, decline or not change on payment of dividend by the company. Next PostWhat does a low proprietary ratio indicate? You Might Also Like Calculate following ratios on the basis of the following information: (i) Gross Profit Ratio. (ii) Current Ratio. (iii) Acid Test Ratio. (iv) Inventory Turnover Ratio. August 18, 2022 Gold and Silver are partners sharing profits and losses in the ratio of 2: 5. They admit Copper on the condition that he will bring Rs. 14,000 as his share of goodwill to be distributed between Gold and Silver. Copper’s share in the future profits or losses will be 1 / 4th. What will be the new profit-sharing ratio and what amount of goodwill brought in by copper will be received by Gold and Silver? November 2, 2022 Marigold Ltd. was registered with the authorized capital of Rs. 3,00,000 divided into 3,000 shares of Rs. 100 each, which were offered to the public. Amount payable as Rs. 30 per share on application, Rs. 40 per share on allotment and Rs. 30 per share on first and final call. These shares were fully subscribed and all money was dully received. Prepare journal and Cash Book. July 13, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Calculate following ratios on the basis of the following information: (i) Gross Profit Ratio. (ii) Current Ratio. (iii) Acid Test Ratio. (iv) Inventory Turnover Ratio. August 18, 2022
Gold and Silver are partners sharing profits and losses in the ratio of 2: 5. They admit Copper on the condition that he will bring Rs. 14,000 as his share of goodwill to be distributed between Gold and Silver. Copper’s share in the future profits or losses will be 1 / 4th. What will be the new profit-sharing ratio and what amount of goodwill brought in by copper will be received by Gold and Silver? November 2, 2022
Marigold Ltd. was registered with the authorized capital of Rs. 3,00,000 divided into 3,000 shares of Rs. 100 each, which were offered to the public. Amount payable as Rs. 30 per share on application, Rs. 40 per share on allotment and Rs. 30 per share on first and final call. These shares were fully subscribed and all money was dully received. Prepare journal and Cash Book. July 13, 2022