Question : The Proprietory Ratio indicates the relationship between proprietor’s funds and _________.
Option 1: Share Capital
Option 2: Total Assets
Option 3: Reserve
Option 4: Debentures
Correct Answer: Total Assets
Solution : The proprietary ratio illustrates how the funds of the proprietor (shareholders) compare to the total assets.
Hence, the correct answer is option 2.
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 : Does the "Proprietary Ratio" denote the relationship between the Proprietor's Funds and?
Option 1: Debentures
Option 3: Short-Term & Long-Term Debts
Option 4: Long-Term Debts
Question : Which of the following statements is false?
Option 1: Long Term Debts = Debentures + Mortgage Loan
Option 2: Shareholder’s Funds = Equity Share Capital + Pref. Share Capital + Capital Reserve + P&L Balance+ long-term debt
Option 3: Total Assets = Non-Current Assets + Current Assets
Option 4: None of the above
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
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