Question
What will be the impact on Return on Equity if cash is
paid to the creditors?Solution
Return on Equity (RoE) = Net Profit / Average Net Worth 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.
Which Indian author penned ‘Godaan’ (‘The Gift of Cow’)?
Match List – I with List – II and select the correct answer using the codes given below the lists:
Direct change of gas to solid without changing in to liquid is called _________.
Two lenses of powers +2.0 D and –2.5 D are combined to make an optical instrument. The combination will
Which freedom fighter is popularly known as Lok Nayak?
What is the current Cash Reserve Ratio (CRR) fixed by the Reserve Bank of India (RBI)?
In which state/UT is the Hemis festival celebrated?
Which of the following states is least likely to be among the top five contributors (installed renewable capacity) toward India’s renewable targets (i...
Who among the following elect(s) the presiding officer of the Vidhan Sabha in India?
Which chemical element of Group 18 of the periodic table is produced by the natural radioactive decay of uranium in soils and rocks?
