Debt-Equity Ratio uses long-term debt and shareholders funds. Payment to creditors affects only current liabilities, leaving both debt and equity unchanged, so the ratio stays the same. The other transactions change debt, equity, or both.
CUET UG 2023 — Accountancy Financial Statements
Aradya Ltd. had debt equity ratio of 2.5 : 1. State which of the following transaction will not effect the Debt Equity Ratio :
Held on 28 May 2023 · Verified 13 Jul 2026.
Purchase of Rs. 15,00,000 machinery by taking bank loan of Rs. 12,00,000
Rs. 2,00,000 paid to creditors
Conversion of Rs. 1,00,000 debentures into Equity shares of Rs. 100 each
Sale of furniture (book value of Rs. 5,00,000) for Rs. 5,50,000
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Profit before interest and tax-
Match List-I with List-II | List-I | List-II | |---|---| | (A) SHAREHOLDERS FUND | (I) Non-current investments | | (B) CURRENT LIABILITIES | (II) Reserves and Surplus | | (C) CURRENT ASSET | (III) Trade Payables | | (D) FIXED ASSET | (IV) Inventories | Choose the correct answer from the options given below:
Auditor issues Annual report of company refering to___.
If the net profits earned during the year is Rs. 50,000 and the amount of debtors at the beginning and the end of the year is Rs. 10,000 and Rs. 20,000 respectively, then the cash from operating activities will be equal to:
Cash advances and loans made by financial enterprises are usually classified as ___________ activity.
Work through every CUET UG Financial Statements PYQ, year by year.