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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


Team Careers360 12th Jan, 2024
Answer (1)
Team Careers360 14th Jan, 2024

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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