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

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 ratio expresses the relationship between long-term debts and shareholder funds?

Option 1: Debt – Equity Ratio

Option 2: Total Assets to Debt Ratio

Option 3: Interest Coverage Ratio

Option 4: Inventory Turnover Ratio

Question : Which of the following statements is incorrect?

Option 1: Decrease in Long term Debts decreases the Debt-Equity Ratio

Option 2: Increase in Long term Debts,increases the Debt-Equity Ratio

Option 3: Decrease in Shareholder’s Funds increases the Debt-Equity Ratio

Option 4: None of the above

Question : Which of the following statements is incorrect?

Option 1: Decrease in Long term Debts decreases the Debt-Equity Ratio

Option 2: Increase in Long term Debts,increases the Debt-Equity Ratio

Option 3: Decrease in Shareholder’s Funds increases the Debt-Equity Ratio

Option 4: None of the above