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
Answer (1)
23rd 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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