Question
Which among the following ratios will be affected
because of salaries paid in cash as advance salary?Solution
Salary paid in advance is a prepaid expense. Its impact on current assets will be that cash will go down and Prepaid Assets will go up, therefore not effecting the total Current Assets. As such, the current ratio will not be impacted as no change in current assets due to this transaction. Debt Equity will also not be impacted as it does not take into account the current assets. Quick ratio, takes into account current assets less any inventory or prepaid assets. As such, the quick ratio will be impacted by this transaction.
A software company enters into a ₹10 lakh contract including installation and training. Installation is ₹8 lakh and training ₹2 lakh. Installation...
The first Annual General Meeting of the company shall be held ______________
Which metric is commonly used to evaluate a company’s operational efficiency?
A project has IRR of 14% and NPV of ₹5 lakhs at 10% cost of capital. If cost of capital rises to 16%, what will happen to NPV?
Auditor notes that the company has accumulated losses exceeding net worth, but management claims recovery. What should auditor consider?
Under what circumstances must Reporting Entities (REs) obtain the Aadhaar number from an individual during the Customer Due Diligence (CDD) process?
An insurance company earned gross premium of ₹120 crore, of which ₹20 crore was unearned at year end. Claims incurred were ₹65 crore. Calculate th...
Which of the following account has a Credit Balance?
Read the following information to answer the below questions:Â
All shares in respect of which dividend has not been paid or claimed for seven consecutive years or more shall be transferred by the company to ______
