Question

(a). Give short notes on Liquid ratio and Interest coverage ratio. 3 M

(b). The debt equity ratio 1:1. State giving reasons, which of the following would

improve, decline and no change the ratio.

(i). Purchase of machinery for cash

(ii). purchase of goods on credit

(iii). sale of furniture at cost

(iv). sale of goods on profit

(v). Redemption of debentures at a premium.​

Answer 1

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• Purchase of machinery for case purchase of goods on credit sale of furniture at cost sale of goods on profit Redemption of debentures at a premium.

Answer 2

Answer:

Purchase of machinery for case purchase of goods on credit sale of furniture at cost sale of goods on profit Redemption of debentures at a premium.