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
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
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
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 : ------------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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