Discussion Forum : Accounting Ratios
Question -


This ratio primarily indicates the rate of external funds in financing the assets and the extent of coverage of their debts by the assets. This ratio is ____.

Options:
A .   Current ratio
B .   Total assets to debt ratio
C .   Debt equity ratio
D .   None of these
Answer: Option B
:
B

This ratio primarily indicates the rate of external funds in financing the assets and the extent of coverage of their debts are covered by assets. This ratio is Total assets to debt ratio.



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