The debt-equity ratio of a company is 2 : 1. In this relation, match the following.
| List-I | List-II |
| a. Issue of equity shares | 1. No change on the ratio |
| b. Cash received from debtors | 2. Reduce the ratio |
| c. Redemption of debentures | 3. No change on the ratio |
| d. Purchased goods on credit | 4. Reduce the ratio |
A. a-1, b-2, c-3, d-4
B. a-4, b-3, c-2, d-1
C. a-4, b-1, c-2, d-3
D. a-4, b-2, c-1, d-3
Answer: Option B
Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
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