Question : Which ratio expresses the relationship between long-term debts and shareholder funds?
Option 1: Debt – Equity Ratio
Option 2: Total Assets to Debt Ratio
Option 3: Interest Coverage Ratio
Option 4: Inventory Turnover Ratio
Answer (1)
22nd Jan, 2024
Correct Answer: Debt – Equity Ratio
Solution :
Debt – Equity Ratio expresses the relationship between long-term debts and shareholder’s funds.
Hence, the correct option is 1.
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