Assuming that the Debt-Equity Ratio is 2 : I, state, giving reasons, w

1.	Assuming that the Debt-Equity Ratio is 2 : I, state, giving reasons, which of the following transactions would (I) Increase; (ii) Decrease; (ii.) Not alter the Debt-Equity Ratio : (i) Issue of new shares (Preference/Equity) for Cash. (ii) Issue of new shares (Preference/Equity) against purchase of fixed asset. (iii) Buy-back of its own shares by a Company. (iv) Issue of Debentures for Cash. (v) Issue of Debentures against purchase of fixed asset. (vi) Repayment of Long-term Borrowings. (vii) Conversion of Debentures into Equity Shares/Preference Shares. (viii) Sale of a fixed asset at par. (ix) Sale of a fixed asset at profit. (x) Sale of a fixed asset at loss. (xi) Purchase of a fixed asset on a credit of 2 months. (xii) Purchase of a fixed asset on long-term deferred payment basis. (xiii) Issue of Bonus Shares.
Answer» Assuming that the Debt-Equity Ratio is 2 : I, state, giving reasons, which of the following transactions would (I) Increase; (ii) Decrease; (ii.) Not alter the Debt-Equity Ratio : (i) Issue of new shares (Preference/Equity) for Cash. (ii) Issue of new shares (Preference/Equity) against purchase of fixed asset. (iii) Buy-back of its own shares by a Company. (iv) Issue of Debentures for Cash. (v) Issue of Debentures against purchase of fixed asset. (vi) Repayment of Long-term Borrowings. (vii) Conversion of Debentures into Equity Shares/Preference Shares. (viii) Sale of a fixed asset at par. (ix) Sale of a fixed asset at profit. (x) Sale of a fixed asset at loss. (xi) Purchase of a fixed asset on a credit of 2 months. (xii) Purchase of a fixed asset on long-term deferred payment basis. (xiii) Issue of Bonus Shares.

Assuming that the Debt-Equity Ratio is 2 : I, state, giving reasons, which of the following transactions would (I) Increase; (ii) Decrease; (ii.) Not alter the Debt-Equity Ratio : (i) Issue of new shares (Preference/Equity) for Cash. (ii) Issue of new shares (Preference/Equity) against purchase of fixed asset. (iii) Buy-back of its own shares by a Company. (iv) Issue of Debentures for Cash. (v) Issue of Debentures against purchase of fixed asset. (vi) Repayment of Long-term Borrowings. (vii) Conversion of Debentures into Equity Shares/Preference Shares. (viii) Sale of a fixed asset at par. (ix) Sale of a fixed asset at profit. (x) Sale of a fixed asset at loss. (xi) Purchase of a fixed asset on a credit of 2 months. (xii) Purchase of a fixed asset on long-term deferred payment basis. (xiii) Issue of Bonus Shares.

Answer»

Assuming that the Debt-Equity Ratio is 2 : I, state, giving reasons, which of the following transactions would (I) Increase; (ii) Decrease; (ii.) Not alter the Debt-Equity Ratio :

(i) Issue of new shares (Preference/Equity) for Cash.

(ii) Issue of new shares (Preference/Equity) against purchase of fixed asset.

(iii) Buy-back of its own shares by a Company.

(iv) Issue of Debentures for Cash.

(v) Issue of Debentures against purchase of fixed asset.

(vi) Repayment of Long-term Borrowings.

(vii) Conversion of Debentures into Equity Shares/Preference Shares.

(viii) Sale of a fixed asset at par.

(ix) Sale of a fixed asset at profit.

(x) Sale of a fixed asset at loss.

(xi) Purchase of a fixed asset on a credit of 2 months.

(xii) Purchase of a fixed asset on long-term deferred payment basis.

(xiii) Issue of Bonus Shares.

Discussion

No Comment Found

Related InterviewSolutions

Reply to Comment