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What will be impact of ‘purchase of a fixed asset on a credit of 3 months’ on a debt-equity ratio of 1 : 1? - Accounts

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प्रश्न

What will be impact of ‘purchase of a fixed asset on a credit of 3 months’ on a debt-equity ratio of 1 : 1?

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उत्तर

The purchase of a fixed asset on credit for 3 months will not affect the debt-equity ratio because both the long-term loans and the shareholders equity will remain unchanged. An increase is only made to the short-term liabilities, which does not have any effect on the ratio.

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  या प्रश्नात किंवा उत्तरात काही त्रुटी आहे का?
पाठ 14: Ratio Analysis - SHORT ANSWER QUESTIONS [पृष्ठ १४.१०९]

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डी. के. गोएल Accountancy Volume 1 and 2 [English] Class 12 ISC
पाठ 14 Ratio Analysis
SHORT ANSWER QUESTIONS | Q 49. | पृष्ठ १४.१०९
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