Match List I with List II
List I List II A. Debt Equity Ratio I. Primarily indicates the rate of external funds in financing assets. B. Total assets to Debt ratio II. Higher proportion provides security to creditors C. Proprietary ratio III. It reveals the efficiency of business in utilization of funds D. Return on Investment IV. It measures degree of indebtness of an enterprise
Choose the correct answer from the options given below:
Match List I with List II
| List I | List II |
|---|---|
| A. Debt Equity Ratio | I. Primarily indicates the rate of external funds in financing assets. |
| B. Total assets to Debt ratio | II. Higher proportion provides security to creditors |
| C. Proprietary ratio | III. It reveals the efficiency of business in utilization of funds |
| D. Return on Investment | IV. 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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