Advertisements
Advertisements
Question
Proprietary ratio indicates the relationship between proprietor’s funds and ______.
Options
Long-Term Debts
Short Term & Long Term Debts
Total Assets
Debentures
MCQ
Fill in the Blanks
Advertisements
Solution
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.
shaalaa.com
Is there an error in this question or solution?
