Technical Problems
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annavera says
February 3, 2019 at 12:24 amWrite off inventory question Nr 5 – The correct answer is ‘Increase Gearing Ratio’.
Please can you advise how write off inventory can influence gearing ratio?
leandrotorres22 says
September 5, 2018 at 3:11 amFor number 5 how does the write off of inventory increase the gearing ratio?
John Moffat says
September 5, 2018 at 6:02 amWriting off inventory will reduce the profit, which in turn reduces the total equity. Therefore the gearing will increase.
leandrotorres22 says
September 5, 2018 at 7:02 amThank you for clarifying 🙂
John Moffat says
September 5, 2018 at 2:17 pmYou are welcome 🙂