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Question
Consider the following data and answer the question that follows:
| Particulars | ₹ |
| Revenue From Operations | 12,00,000 |
| Cost of Revenue from Operations | 9,00,000 |
| Operating Expenses | 15,000 |
| Inventory | 20,000 |
| Other Current Assets | 2,00,000 |
| Current Liabilities | 75,000 |
| aid up Share Capital | 4,00,000 |
| Statement of Profit and Loss (Dr.) | 47,500 |
| Total Debt | 2,50,000 |
What is the Debt to Equity Ratio?
Options
0.75 : 1
1 : 2
2 : 1
0.63 : 1
MCQ
Solution
0.63 : 1
Explanation:
Debt to Equity Ratio = `"Total Debt"/"Shareholder's Fund"`
= `(₹ 2,50,000)/(₹ 4,00,000)`
= 0.63 : 1
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Types of Ratios
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