Question

On the basis of following information received from a firm, its Total Assets-Debt Ratio will be:

Shareholder’s Funds ₹ 2,00,000; Dr. Balance of Profit & Loss ₹ 50,000; Current Liabilities ₹ 1,00,000; Current Assets ₹ 2,00,000; Total Assets ₹ 6,00,000.

विकल्प

• 2 : 1

• 1.5 : 1

• 3 : 1

• 1.71 : 1

Answer 1

2 : 1

Explanation:

Total Assets = ₹ 6,00,000

Long-term Debts = Total Assets − Shareholder’s Funds − Current Liabilities

= 6,00,000 − 2,00,000 − 1,00,000

= ₹ 3,00,000

Total Assets to Debt Ratio = `"Total Assets"/"Long term Debts"`

= `(6,00,000)/(3,00,000)`

= 2 : 1