Question : ________ratio is a variation of the debt-equity ratio and gives the same indication as the debt-equity ratio. In this ratio, total assets are expressed in relation to long-term debts.
Option 1: Debt to equity ratio
Option 2: Total assets to debt ratio
Option 3: Proprietary Ratio
Option 4: Current Ratio
Correct Answer: Total assets to debt ratio
Solution : Answer =Total assets to debt ratio
Total Assets to DEBT
Ratio = Total Assets / long term DEBT Hence, the correct option is 2.
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 : What is the debt in the context of the debt-to-equity ratio?
Option 1: Short Term Debts
Option 2: Long Term Debts
Option 3: Debentures and Current Liabilities
Option 4: Total Debts
Question : ------------ratio indicates the proportion of total assets funded by owners or shareholder
Option 1: Proprietary Ratio
Option 2: Debt to equity ratio
Option 3: Total assets to debt ratio
Option 4: Current ratio
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