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.
In the question below there are three statements followed by two conclusions I and II. You have to take the three given statements to be true even if t...
Statements:
Some plates are spoons.
All spoons are cups.
No cup is a fork.
Conclusions:
I. Some plates are cup...
Statements:
Some diamonds are golds.
Some golds are marbles.
Conclusions:
I. Some diamonds are marbles.
II. Som...
Statements :
Some pens are tables.
No table is a book.
Some books are threads
Some threads are boxes.
Conclusions: ...
How many children does Mr. Raman has?
I. Mr. Raman has eight sons and each has one sister.
II. Number of sons of Mr. Raman is eight times ...
Statement:
Only a few P are Q Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â
Only a few Q are R Â Â Â Â Â Â Â Â Â Â Â Â ...
In the question below there are three statements followed by three conclusions I, II and III. You have to take the four given statements to be true eve...
Read the given statements and conclusions carefully. Assuming that the two statements are given followed by three conclusions numbered I, II and III. ...
Statements:
No curtain is wall.
None of the walls is windows.
All windows are roofs.
Conclusions:
I. Mostly roofs bei...
Statements:
Some kitchen is balcony.
All balcony is room.
No room is floor.
Conclusions:
I....
