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 : Which is the debt-to-equity ratio?

Option 1: Long Term Debts/Shareholder’s Funds 

Option 2: Short Term Debts/Equity Capital

Option 3: Shareholder’s Funds/Total Assets

Option 4: Total Assets/Long-term Debts

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.

Option 1: Debt to equity ratio

Option 2: Total assets to debt ratio

Option 3: Proprietary Ratio

Option 4: Current Ratio

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.

Option 1: Debt to equity ratio

Option 2: Total assets to debt ratio

Option 3: Proprietary Ratio

Option 4: Current Ratio

Question : Which of the following statements is incorrect?

Option 1: Decrease in Long term Debts decreases the Debt-Equity Ratio

Option 2: Increase in Long term Debts,increases the Debt-Equity Ratio

Option 3: Decrease in Shareholder’s Funds increases the Debt-Equity Ratio

Option 4: None of the above

Question : Which of the following statements is incorrect?

Option 1: Decrease in Long term Debts decreases the Debt-Equity Ratio

Option 2: Increase in Long term Debts,increases the Debt-Equity Ratio

Option 3: Decrease in Shareholder’s Funds increases the Debt-Equity Ratio

Option 4: None of the above