Question : Does the "Proprietary Ratio" denote the relationship between the Proprietor's Funds and?
Option 1: Debentures
Option 2: Total Assets
Option 3: Short-Term & Long-Term Debts
Option 4: Long-Term Debts
Answer (1)
24th Jan, 2024
Correct Answer: Total Assets
Solution :
The proprietary ratio is the ratio of total assets to shareholders' equity.
It is used to assess the capital structure of the company's stability and efficiency.
It displays the percentage of a company's total assets that are funded by the owner's money.
Hence option 2 is the correct answer.
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