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easyMCQCUET Accountancy 2022 8 Aug Shift 22026Accountancy
1 mark

Debt-equity ratio is a sub-part of:

  1. A
    short-term solvency ratio
  2. B
    long-term solvency ratio
  3. C
    debtors turnover ratio
  4. D
    inventory turnover ratio

Solution & Step-by-step Explanation

Debt-equity ratio evaluates the long-term financial stability and soundness of the firm, making it a long-term solvency ratio.

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Debt-equity ratio is a sub-part of:
A
short-term solvency ratio
B
long-term solvency ratio
C
debtors turnover ratio
D
inventory turnover ratio

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