State with reason whether repayment of long-term loan will result in increase, decrease or no change of debt-equity ratio. Post category:Accountancy Reading time:1 mins read SOLUTION Debt-equity ratio will decrease because long-term loan will decrease but total equity (Shareholder’s funds) will remain unchanged. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostState one transaction which results in a decrease in ‘Debt-Equity Ratio’ and no change in ‘Current Ratio’. Next PostThe debt-equity ratio of a company is 0.8: 1. State whether the long-term loan obtained by the company will increase, decrease or not change the ratio. You Might Also Like Why are irredeemable debentures also known as perpetual debentures? (C.B.S.E. Sample Paper. 20I8). September 29, 2022 From the following information, calculate Cash Flow from Financing Activities: August 18, 2022 A, B and C are partners sharing profits and losses in the ratio of 2 : 3 : 5. On 31st March, 2019, their Balance Sheet was: August 2, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Why are irredeemable debentures also known as perpetual debentures? (C.B.S.E. Sample Paper. 20I8). September 29, 2022
A, B and C are partners sharing profits and losses in the ratio of 2 : 3 : 5. On 31st March, 2019, their Balance Sheet was: August 2, 2022