Question

Proprietary ratio indicates the relationship between proprietor’s funds and ______.

विकल्प

• Long-Term Debts

• Short Term & Long Term Debts

• Total Assets

• Debentures

Answer 1

Proprietary ratio indicates the relationship between proprietor’s funds and total assets.

Explanation:

The Proprietary Ratio establishes the relationship between Shareholders’ Funds (Proprietor’s Funds) and Total Assets. It indicates the proportion of total assets financed by the owners’ funds and reflects the financial strength and stability of the business.