Question
What will be the impact on Return on Equity (RoE) if
cash is paid to the creditors?Solution
Return on Equity (RoE) = Net Profit / average networth of the company As per accrual accounting, the transactions are recorded in the income statement based on when they occur and not based on the actual cash movement. As such, the net profit is not affected /changed when actual payment is made to the creditors. Thus the RoE remains unaffected by the above transaction.
Answer the following questions based on the information given below.
There are eight persons G, H, I, J, K, L, M and N in a family of three gen...
How is I’s mother related to J?
Answer the questions based on the information given below.
There are seven persons- D, E, F, G, H, I, and J, in a family, which consist of th...
Which of the following combinations of person is not a married couple?
How is D related to G?
If,
‘T + S’ means that T is the father of S,
‘T X S’ means that T is the mother of S,
‘T - S’ means ‘T’ is the wif...
Answer the following question based on the information given below:
There are seven members- D, E, F, G, H, I, and J, in a family of three gene...
Who is the mother of D, in the given arrangement?
Answer the questions based on the information given below.
Six persons M, N, O, P, Q and R live in a family of three generations. M is married ...
Z is the brother of Y, W is the wife of V, who is the only son of P, who is the male member of the family. Y is the daughter of W. How is P related to Z?
