Question
An increase in the credit period allowed to debtors will
likely:Solution
A longer credit period means money remains tied up in receivables for a longer time, which lengthens the cash conversion cycle (A is wrong) and increases the working capital requirement (B is wrong). It also increases the probability that some customers will default on their payments, thereby increasing the risk of bad debts.
Salaries of ₹1 lakh paid in April 2024 relate to March 2024. As per matching concept, when should this expense be recorded?
What is the primary purpose of bookkeeping in business?
A company has Net Sales of ₹1,000 lakhs, Net Profit of ₹80 lakhs, Total Assets of ₹750 lakhs, and Equity of ₹250 lakhs.
Calculate Return ...
Which of the following is NOT an advantage of Bonus issue by a company?
What is the maximum term loan sanction allowed for accounts opened using Aadhaar OTP-based e-KYC?
Annual Lettable Value = ₹3,60,000
Municipal Taxes = ₹30,000
Interest on Housing Loan = ₹2,50,000
Compute taxable income under...
Which part of the Companies Act, 2013, deals with the 'Books of Account'?
For Assessment year 2020-21, A security ( other than a unit) listed in a recognized stock exchange, or a unit of equity oriented fund or a unit of the U...
Who is called father of modern accountancy who also described the duties and responsibilities of auditor?
If there exists a specific sports fund, the expenses incurred in relation to sports activities will be taken to:
