Question : The formula for ascertaining Total Assets to Debt Ratio is _______.
Option 1: Total Assets/Long term Loans
Option 2: Tangible Assets/Long term Loans
Option 3: Current Assets/Total Liabilities
Option 4: Total Assets/Total Liabilities
Correct Answer: Total Assets/Long term Loans
Solution : The Formula for Total Asset to Debt is - Total Assets/Long term Loans. Hence, the correct answer is option 1
Question : Working capital is the difference between
Option 1: Total debt and long term debt
Option 2: Liquid assets and current liabilities
Option 3: Current assets and current liabilities
Option 4: Total assets and current liabilities
Question : Which of the following statements is correct?
Option 1: Total Assets = Non-Current Assets (Tangible Assets + Intangible Assets + Non-Current Investments + Long Term Loans & Advances) + Current Assets
Option 2: Debt = Long Term Borrowings + Long Term Provisions
Option 3: Examples of Debts are Debentures, Mortgage Loan, Bank Loan, Loans from financial institutions and Public Deposits etc
Option 4: All of the above
Question : Fixed Assets (Gross) RS. 10,00,000; Accumulated Depreciation RS. 5,00,000; Non-Current Investments RS. 50,000; Long-term Loans and Advances RS. 2,00,000; Current Assets RS. 2,50,000; Current Liabilities RS. 10,00,000; Long-term Borrowings RS. 3,25,000; Long-term Provisions RS. 2,75,000. Total Assets to Debt Ratio will be
Option 1: 3:2
Option 2: 5:3
Option 3: 7:5
Option 4: 4:1
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