Net increase in Working Capital other than Cash and Cash Equivalents will increase, decrease or not change Cash Flow from Operating Activities. Give reason in support of your answer.
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Distinguish between stock and flow. Between net investment and capital which is a stock and which is a flow ? Compare net investment and capital with
The main differences between stock and flow are. (i) Stock is related to a point of time whereas flow is related to a period of time. (ii) A stock is...
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Current Ratio of a company is 3 : 1. State with reason whether the payment of Rs. 20,000 to the creditors will increase, decrease or not change the ra
After payment of Rs. 20,000 to the creditors, both total of current assets and total of current liabilities will be reduced by the same amount. Therefore, Current Ratio will increase.
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Trade Receivables Turnover Ratio of a company is 6 times. State with reason whether the ratio will improve, decrease or not change due to increase in
No change due to increase in the value of closing stock by Rs. 50,000 because it will affect neither net credit sales nor average trade receivables.
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State with reasons, whether the Operating Ratio of a company will increase, decrease or not change due to the following transactions: (a) Paid Wages R
(a) Increase, (b) No change, (c ) Decrease, (d) Increase and (e) Increase.
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Why is Cash Flow Statement prepared? Or What is the objective of preparing a Cash Flow Statement? Or State the primary objective of preparing Cash Flo
Cash Flow Statement is prepared to determine the cash flows of an enterprise during a specific period from its Operating, Investing and Financing Activities.
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List any two financing activities that will result into outflow of cash. Or Name any two financing activities that will result into outflow of cash.
(i) Payment of dividend (ii) Cash repayment of amount borrowed.
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From the following, calculate: (a) Operating Profit Ratio, and (b) Working Capital Turnover Ratio. `{:(,"Rs"),("Revenue from Operations","2,00,000"),(
(a) Operating Profit Ratio = `("Operating Profit")/("Revenue from Operations")xx100 = ("Rs. 34,000")/("Rs. 2,00,000")xx100` (b) Working Capital Turnover Ratio = `("Revenue from Operations")/("Working Capital") = ("Rs. 2,00,000")/("Rs. 50,000")` = 4 Times....
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Capital Employed is ₹ 5,00,000, Working Capital is ₹ 1,00,000, Cost of Revenue from Operations is ₹ 16,00,000, Gross Profit is ₹ 4,00,000. Calculate F
Fixed Assets Turnover Ratio`=(" Revenue from Operations")/("Net Fixed Assets")=( "₹ 20,00,000 ")/("4,00,000")`=5 times Revenue from Operations =Cost of Revenue from Operations + Gross profit = ₹ 16,00,000+₹ 4,00,000= ₹ 20,00,000...
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Capital Employed is ₹ 5,00,000, Working Capital is ₹ 1,00,000, Cost of Revenue from Operations is ₹ 16,00,000, Gross Profit is ₹ 4,00,000.Total Assets
Current Assets Turnover Ratio `=("Revenue from Operations")/("Current Assets ")= ("₹ 1,00,000")/("₹ 15,00,000")`= 20 Times . Revenue from Operations = Cash sales + Credit Sales =₹ 16,00,000+₹ 4,00,000= ₹ 20,00,000. Net...
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Capital A/c……………..Dr. To Profit and Loss Account (Being Net Profit transferred to Capital A/c)
Profit and Loss Account…………….Dr. To Capital A/c (Being Net Profit transferred to Capital A/c)
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