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12th Class Accountancy Accounting Ratios Question Bank MCQs - Accounting Ratios

  • question_answer
    If Total Assets are Rs. 1,25,000, Total Debts; i.e., external debts are Rs. 1,00,000 and Current Liabilities are Rs. 50,000, Debt-equity Ratio will be:

    A) 1:1                  

    B) 1:2

    C) 2:1                 

    D) None of these

    Correct Answer: C

    Solution :

    [c] 2:1
    Hint: Debt-Equity Ratio = \[\frac{Debt}{~Equity}\]
                                        =\[\frac{1,00,000-50,000}{~1,25,000-1,00,000}\]
                                      =\[\frac{50,000}{~25,000}\] = 2:1


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