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Match List I with List II

List IList II
A. Debt Equity RatioI. Primarily indicates the rate of external funds in financing assets.
B. Total assets to Debt ratioII. Higher proportion provides security to creditors
C. Proprietary ratioIII. It reveals the efficiency of business in utilization of funds
D. Return on InvestmentIV. It measures degree of indebtness of an enterprise

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 2

Debt Equity Ratio measures degree of indebtedness (IV). Total Assets to Debt ratio indicates the coverage of external funds by assets (I). Higher Proprietary Ratio gives security to creditors (II). Return on Investment reveals efficiency of fund utilization (III). Hence A-IV, B-I, C-II, D-III.

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