Question : The debt-equity Ratio of a company is 1: 2. The Purchase of a fixed Asset for Rs.5,00,000 on a long-term deferred payment basis will increase, decrease or not change the ratio.

Option 1: Increase

Option 2: Decrease

Option 3: No change

Option 4: Can't say

Question : The Debt-Equity Ratio of a Company is 1:2. State the transaction by which it would increase to 3:1.

Option 1: Repayment of Long term Borrowings of Rs. 40,000 .

Option 2: Purchased a Fixed Asset for Rs.50,000 on long-term deferred payment basis.

Option 3: Issued new equity shares of Rs.75,000.

Option 4: Payment of Dividend Payable.

Question : The Debt-Equity Ratio of a Company is 1:2. State the transaction by which it would increase to 3:1.

Option 1: Repayment of Long term Borrowings of Rs. 40,000 .

Option 2: Purchased a Fixed Asset for Rs.50,000 on long-term deferred payment basis.

Option 3: Issued new equity shares of Rs.75,000.

Option 4: Payment of Dividend Payable.

Question : The Debt-Equity Ratio of a Company is 1: 2. Payment of Dividend Payable would

Option 1: Increase debt to equity ratio

Option 2: Decrease debt to equity ratio

Option 3: No change

Option 4: Increase current ratio

Question : The Debt-Equity Ratio of a Company is 1: 2. Payment of Dividend Payable would

Option 1: Increase debt to equity ratio

Option 2: Decrease debt to equity ratio

Option 3: No change

Option 4: Increase current ratio