Question : Does the "Proprietary Ratio" denote the relationship between the Proprietor's Funds and?
Option 1: Debentures
Option 2: Total Assets
Option 3: Short-Term & Long-Term Debts
Option 4: Long-Term Debts
Correct Answer: Total Assets
Solution : The proprietary ratio is the ratio of total assets to shareholders' equity. It is used to assess the capital structure of the company's stability and efficiency. It displays the percentage of a company's total assets that are funded by the owner's money. Hence option 2 is the correct answer.
Question : Which is the debt-to-equity ratio?
Option 1: Long Term Debts/Shareholder’s Funds
Option 2: Short Term Debts/Equity Capital
Option 3: Shareholder’s Funds/Total Assets
Option 4: Total Assets/Long-term Debts
Question : Which of the following is the proprietary ratio?
Option 1: Shareholder’s Funds/Fixed Assets
Option 2: Shareholder’s Funds/Total Assets
Option 3: Long-term Debts/Shareholder’s Funds
Option 4: Total Assets/Shareholder’s Funds
Question : The Proprietory Ratio indicates the relationship between proprietor’s funds and _________.
Option 1: Share Capital
Option 3: Reserve
Option 4: Debentures
Question : ______________ratio expresses the relationship between long-term debts and shareholder's funds.
Option 1: Debt to equity ratio
Option 2: Current ratio
Option 3: Liquid ratio
Option 4: Gross profit ratio
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