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Question
Debt to Capital Employed ratio is 0.3:1. State whether the following transaction, will improve, decline or will have no change on the Debt to Capital Employed Ratio. Also give a reason for the same.
Purchased Goods on Credit for ₹ 1,00,000 for a credit of 15 months, assuming operating cycle is of 18 months.
Options
Ratio will improve.
Ratio will decline.
Ratio has no change.
MCQ
One Line Answer
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Solution
Ratio has no change.
Reason – Both Debt and Capital Employed will remain the same.
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