if the current ratio is 0.5 what is the impact of working
capital
- 4 Answers
- 11791 Views
- Capital IQ, I also Faced
- E-Mail Answers
Answer Posted / tanmaya.10@rediffmail.com
if the current ratio is 0.5 then there not sufficient gross working capital(current assets)to meet the current liabilities.There will be a negative working capital.
| Is This Answer Correct ? | 9 Yes | 1 No |
Post New Answer View All Answers
what is miscellaneous expenditure??
HOW CAN I OPEN A CC A/C ? WHAT ARE THE MINIMUM REQUERMENT TO OPEN A CC A/C ? WHAT ARE THE FACILITY OF A CC A/C IN THE BUSINESS FIELD ? WHAT ARE THE BANK CHARGES AND INTEREST IN CC A/C ?
Debit Card Come Under Which group in Tally 9?
Definition of push down accounting
my assessment says that I must post a dishonoured cheque in the general journal not a specialised journal how would I write that I know bank would be credited but what account would be debited???
Define offset accounting?
Do you know what is balance sheet?
The following information is extracted from the audited books of accounts of a chain of food stores for the period ended 31st December 2015. Revenue Statement (Trading and Profit and Loss Account for the year ended 31st December 2015. BWP’000 BWP’000 Sales 460 Cost of good sold (220) Gross profit 240 Wages 50 Other expenses 30 (80) Net Profit 160 Note: The purchase figure included in the cost of goods sold of P255 000. Balance Sheet as at 31st December 2015 BWP’000 BWP’000 Fixed Assets 400 Current assets: Stock 80 Debtors (trade) 120 Bank 400 ----- [600] Current liabilities: Trade creditors 300 ------ [300] 300 Net Assets 700 ==== Financed by: Share capital 600 Revenue reserves 100 ------ 700 Shareholders Funds 700 ===== Required: (a) Calculate the following accounting ratios: (i) Current ratio (ii) Acid test ratio (iii) Stock turnover (in days) (iv) Debtors turnover (in days) (v) Creditors turnover (in days) (vi) Return on capital employed (ROCE) (vii) Gross profit percentage (viii) Net profit percentage (b). Give a brief comment on the performance of the company, based on the above ratios.
hi every one i just want to know the entry for bank charges dt 31.3.2016 which deducted on 02.04.2016 kindly help me thank you raj
what is inter-company transaction? what is Inter-Branch transaction?
RPC Ltd. follows the written down value method of depreciating machinery year after year due to (a) Comparability. (b) Convenience. (c) Consistency. (d) All of the above
Tell me what happens to company's “cash account” if it borrows money from the bank by signing a note payable?
in what circumstances it is mandatory to calculate the goodwill.
What is Provision Entry
Hello Friends, I am Vinod Rawat & want some tips of interview question for the post of accountant in a reputed company Pls. Given Examples.
