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 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.
Which of the following is NOT a financial measure of divisional performance?
What is specifically required for conducting V-CIP (Video-Based Customer Identification Process) under RBI’s KYC framework?
As per the Nayak committee, what percentage of its annual projected turnover should an MSME get as working capital from a bank?
With respect to hire purchase and installment sale transactions, which of the following statement is incorrect?
After providing for ___________, Declaration of Dividends for the current year is made.
An expansionary (inflationary) gap occurs when:
An interface that allows user to store data in a two-tier architecture is known as _______.
AS 20 is related to:
Which of the following statements are true about input tax credit?
Statement 1: Input tax credit of SGST can be utilised for payment of SGST firs...
A shipping company is required by law to bring all ships into dry dock every five years for inspection and overhaul. What is the correct treatment for t...
