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The debt equity ratio of a company is 1:1 state giving reasons, which of the following would improve, reduce or not change the ratio (i)Purchase, of machinery for cash (ii)Purchase of goods on credit (iii) Sale of furniture at cost (iv)Sale of goods at a profit (v)Redemption of debentures at a premium

The debt equity ratio of a company is 1:1 state giving reasons, which of the following would improve, reduce or not change the ratio (i)Purchase, of machinery for cash (ii)Purchase of goods on credit (iii) Sale of furniture at cost (iv)Sale of goods at a profit (v)Redemption of debentures at a premium

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 20MCQ
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The debt equity ratio of a company is 1:1 state giving reasons, which of the following would improve, reduce or not change the ratio

(i)Purchase, of machinery for cash

(ii)Purchase of goods on credit (iii) Sale of furniture at cost

(iv)Sale of goods at a profit

(v)Redemption of debentures at a premium

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