Question : What is the debt in the context of the debt-to-equity ratio?
Option 1: Short Term Debts
Option 2: Long Term Debts
Option 3: Debentures and Current Liabilities
Option 4: Total Debts

Question

Question : What is the debt in the context of the debt-to-equity ratio?

Option 1: Short Term Debts

Option 2: Long Term Debts

Option 3: Debentures and Current Liabilities

Option 4: Total Debts

Team Careers360 · Accepted Answer

Correct Answer: Long Term Debts

Solution : The debt-equity ratio evaluates the relative capital contributions of shareholders or owners and debtors. The ratio of a company's total long-term debt to equity capital is known as the debt-equity ratio.
Hence option 2 will be the correct answer.

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Question : What is the debt in the context of the debt-to-equity ratio?Option 1: Short Term DebtsOption 2: Long Term Debts Option 3: Debentures and Current LiabilitiesOption 4: Total Debts

Related Questions

Question : Which is the debt-to-equity ratio?

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Question : ________ratio is a variation of the debt-equity ratio and gives the same indication as the debt-equity ratio. In this ratio, total assets are expressed in relation to long-term debts.

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Question : What is the debt in the context of the debt-to-equity ratio?
Option 1: Short Term Debts
Option 2: Long Term Debts
Option 3: Debentures and Current Liabilities
Option 4: Total Debts