The Debt-Equity Ratio of a Company is 1 : 2. Which of the following wo

1.	The Debt-Equity Ratio of a Company is 1 : 2. Which of the following would increase, decrease or not change it ? (i) Repayment of Long term Borrowings of Rs. 40,000. (ii) Purchased a fixed Asset for Rs. 50,000 on long-term deferred payment basis. (iii) Issued new equity shared of Rs. 75,000. (iv) Payment of Dividend Payable. (v) Goods purchased on Credit. (vi) Payment to Trade Payables.
Answer» The Debt-Equity Ratio of a Company is 1 : 2. Which of the following would increase, decrease or not change it ? (i) Repayment of Long term Borrowings of Rs. 40,000. (ii) Purchased a fixed Asset for Rs. 50,000 on long-term deferred payment basis. (iii) Issued new equity shared of Rs. 75,000. (iv) Payment of Dividend Payable. (v) Goods purchased on Credit. (vi) Payment to Trade Payables.

The Debt-Equity Ratio of a Company is 1 : 2. Which of the following would increase, decrease or not change it ? (i) Repayment of Long term Borrowings of Rs. 40,000. (ii) Purchased a fixed Asset for Rs. 50,000 on long-term deferred payment basis. (iii) Issued new equity shared of Rs. 75,000. (iv) Payment of Dividend Payable. (v) Goods purchased on Credit. (vi) Payment to Trade Payables.

Answer»

The Debt-Equity Ratio of a Company is 1 : 2. Which of the following would increase, decrease or not change it ?

(i) Repayment of Long term Borrowings of Rs. 40,000.

(ii) Purchased a fixed Asset for Rs. 50,000 on long-term deferred payment basis.

(iii) Issued new equity shared of Rs. 75,000.

(iv) Payment of Dividend Payable.

(v) Goods purchased on Credit.

(vi) Payment to Trade Payables.

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