GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The ratios which measure the relative contribution of financing by owners and financing provided by outsiders are called
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Activity ratios
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Liquidity ratios
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Leverage ratios
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Profitability ratios
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Explanation:
Detailed explanation-1: -Measures how much debt a business is carrying as compared to the amount invested by its owners. This indicator is closely watched by bankers as a measure of a business’s capacity to repay its debts. Shows the percentage of a company’s assets financed by creditors.
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