Debt-equity ratio compares outside long-term debt to shareholders' funds, indicating the extent of leverage in the capital structure. It judges the firm's ability to meet long-term obligations and therefore falls under long-term solvency ratios.
Debt-equity ratio is a sub-part of:
CUET UG 2022 — Accountancy Financial Statements
2022mcqeasy
Debt-equity ratio is a sub-part of:
Official previous-year question
Held on 8 Aug 2022 · Verified 13 Jul 2026.
Options
- A
short-term solvency ratio
- B
long-term solvency ratio
- C
debtors turnover ratio
- D
inventory turnover ratio
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