GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Reserve / Capital
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Assets / Current Assets
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(Reserve + Capital + Loss) / 2
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Total Liabilities /Shareholders Equity
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Detailed explanation-1: -Debt-to-equity (D/E) ratio is used to evaluate a company’s financial leverage and is calculated by dividing a company’s total liabilities by its shareholder equity. D/E ratio is an important metric in corporate finance.
Detailed explanation-2: -The debt-to-equity ratio measures your company’s total debt relative to the amount originally invested by the owners and the earnings that have been retained over time.
Detailed explanation-3: -The debt-to-equity ratio shows how much of a company is owned by creditors (people it has borrowed money from) compared with how much shareholder equity is held by the company. It is one of three calculations used to measure debt capacity-along with the debt servicing ratio and the debt-to-total assets ratio.