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Return on Equity (RoE) = Net Profit / Networth of the company As per accrual accounting, the transactions are recorded in the income statement based on when they occur and not based on the actual cash movement. As such, the net profit is not affected /changed when actual payment is made to the creditors. Thus the RoE remains unaffected by the above transaction. However, a payment to the creditors indicates a decline in the cash and also in the creditors. Thus, the total assets of the company fall. Since Return on Assets (RoA) = Net Profit / total assets of the company, a decline in the total assets will improve the RoA, other things remaining the same.
The largest general insurance company in the world by revenue is:
The first private health insurance company in India was:
A policy that covers the loss of baggage during travel is:
Which among these is not a type of General Insurance plans?
I. Motor Insurance
II. Marine Insurance
III. Health Insurance
A motor insurance cover note is valid for how many days?
An endorsement added to an insurance policy, or clause within a policy, that provides additional coverage for risks other than those in a basis policy i...
Who is the chairman of 15th Finance Comission?
What is NOT a common express condition in an insurance policy?
Which is not a General Insurance company?
Consider the following statement:
I. NCB is given to the insured and not to the insured vehicle.
II. On transfer of the vehicle, the ...