Request a call back

Join NOW to get access to exclusive study material for best results

CBSE Class 12-commerce Answered

In accounting ratio que no 14 why  condition 1 and 2 given different reason of same transaction
Asked by Smitakhadayate20 | 30 Sep, 2018, 03:50: PM
answered-by-expert Expert Answer
The reason of difference in change recorded with the same transactions recorded under varied circumstances is because of the incidence of change that is recorded. If Current Ratio is 1 : 1, it means Current Assets and Current Liabilities have similar effect on the ratio. However, if Current Ratio is 0.8 : 1, it means 80% Current Assets are there as compared to 100% liabilities. Now, as clear from varies transactions posted in the question, if a transaction affects both current assets and liabilities with same amount then because of this current scenario or incidence, the change would be different. 
Answered by | 01 Oct, 2018, 09:12: AM

Application Videos

Concept Videos

CBSE 12-commerce - Accountancy
Asked by joymotibarman | 15 Jan, 2024, 02:15: PM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 12-commerce - Accountancy
Asked by divyanshmaheshwari2003 | 04 Nov, 2023, 05:06: PM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 12-commerce - Accountancy
Asked by deepamonidas1234 | 21 Sep, 2023, 09:14: PM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 12-commerce - Accountancy
Asked by officialpaperio.man | 31 Jan, 2022, 09:14: AM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 12-commerce - Accountancy
Asked by swapnil292001 | 08 Nov, 2020, 11:22: AM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 12-commerce - Accountancy
Asked by raksha2sanubth | 13 Jul, 2020, 11:22: AM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 12-commerce - Accountancy
Asked by raksha2sanubth | 13 Jul, 2020, 11:19: AM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 12-commerce - Accountancy
Asked by sonowalabhilash | 02 Jul, 2020, 09:46: AM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 12-commerce - Accountancy
Asked by simarjiv10 | 24 Jun, 2020, 11:25: PM
ANSWERED BY EXPERT ANSWERED BY EXPERT
Get Latest Study Material for Academic year 24-25 Click here
×