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


Team Careers360 21st Jan, 2024
Answer (1)
Team Careers360 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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