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Question : ______________ratio expresses the relationship between long-term debts and shareholder's funds.

Option 1: Debt to equity ratio

Option 2: Current ratio

Option 3: Liquid ratio

Option 4: Gross profit ratio


Team Careers360 4th Jan, 2024
Answer (1)
Team Careers360 7th Jan, 2024

Correct Answer: Debt to equity ratio


Solution : Answer = Debt to equity ratio

The Debt to equity ratio expresses the relationship between long-term debts and shareholder's funds. It indicates the proportion of financing provided by creditors compared to shareholders, assessing the company's leverage and financial risk.
Hence, the correct option is 1.

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