Question : Where is the Debt Equity Ratio covered?
Option 1: Liquidity Ratio
Option 2: Activity Ratio
Option 3: Operating Ratio
Option 4: Solvency Ratios
Answer (1)
23rd Jan, 2024
Correct Answer: Solvency Ratios
Solution :
A solvency ratio looks at a company's capacity to pay off its long-term debts and commitments. The debt-to-assets ratio, the interest coverage ratio, the equity ratio, and the debt-to-equity (D/E) ratio are the four primary measures of solvency.
Hence option 4 is the correct answer.
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