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  5. Accounting Ratios

12th Class Accountancy Accounting Ratios Question Bank Case Based - Accounting Ratios

  • question_answer
    Total assets to debt ratio for the year 2018 will be:

    A) 3.57 : 1             

    B) 0.26 : 1

    C) 3.85 : 1             

    D) 3.01 : 1

    Correct Answer: C

    Solution :

    [c] 3.85:1
    Hint: Total Assets to Debt Ratio = \[\frac{Total Assets}{Debt}\]
    =\[\frac{Non-current Assets + Current Assets}{Long-term Borrowings}\]
    \[\frac{90,500+5,000+10,000+7,000+7,200+15,300}{35,000}\]
       = \[\frac{1,35,000}{35,000}\]    =  3.85:1


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