Question : Total Assets 7,70,000
Total Liabilities 2,60,000
Current Liabilities 40,000
Total Assets to Debt Ratio is:
Option 1: 2.56 : 1
Option 2: 2.80 : 1
Option 3: 3.50 : 1
Option 4: 3 : 1
Answer (1)
22nd Jan, 2024
Correct Answer: 3.50 : 1
Solution : The total debt to total assets ratio is calculated by dividing the total debt by the total assets of the company.
So, Total Debt = Total Liabilities - Current Liabilities
= 260000 - 40000 = Rs.220000
Total Asset is Rs.770000
Hence the Ratio is -
770000 / 220000 = 3.50: 1
Hence the Correct answer is option 3
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