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| 1. |
State with reasons, whether the Operating Ratio of a company will increase, decrease or not change due to the following transactions: (a) Paid Wages Rs. 1,000, (b) Issued Rs. 1,00,000, 12% Debentures, (c ) Sold Goods on Credit Rs. 15,000, (d) Paid Rs. 5,000 Commission on Sales and (e) Paid Rs. 4,000 for Advertisement. |
| Answer» (a) Increase, (b) No change, (c ) Decrease, (d) Increase and (e) Increase. | |