What will be the impact of ‘Cash Paid to Trade Payables’ on a Current ratio of 1: 1? State the reason. Post category:Accountancy Reading time:1 mins read SOLUTION Current ratio will not alter because both Current assets and Current liabilities are decreased by the same amount. 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 PostWhat will be the impact of ‘Cash Paid to trade Payables on a Current Ratio of 2: 1? State the reason. Next PostWhat will be the impact of ‘Cash paid to Trade Payables’ on a Current ratio of 8: 1? State with reason. You Might Also Like Nazma Ltd. received interest on an item and the accountant classified it under Investing Activity while preparing Cash Flow Statement. Name another item for which such a treatment is possible. October 6, 2022 If Trade Receivables Turnover Ratio is more than the norm set for it, what will it indicate? October 3, 2022 Moli and Bholi contribute Rs. 20,000 and Rs. 10,000 respectively towards capital. They decide to allow interest on capital @ 6% p.a. Their respective share of profits is 2: 3 and the net profit for the year is Rs. 1,500. Show distribution of profits: (i) where there is no agreement except for interest on capitals; and (ii) where there is an agreement that the interest on capital as a charge. July 21, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Nazma Ltd. received interest on an item and the accountant classified it under Investing Activity while preparing Cash Flow Statement. Name another item for which such a treatment is possible. October 6, 2022
If Trade Receivables Turnover Ratio is more than the norm set for it, what will it indicate? October 3, 2022
Moli and Bholi contribute Rs. 20,000 and Rs. 10,000 respectively towards capital. They decide to allow interest on capital @ 6% p.a. Their respective share of profits is 2: 3 and the net profit for the year is Rs. 1,500. Show distribution of profits: (i) where there is no agreement except for interest on capitals; and (ii) where there is an agreement that the interest on capital as a charge. July 21, 2022