Practice Debt-Equity Ratio - 1.4.2.1 | ICSE Class 12 Accounts – Chapter 5: Ratio Analysis | ICSE Class 12 Accounts
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Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is the formula for the Debt-Equity Ratio?

💡 Hint: What two financial components does this ratio compare?

Question 2

Easy

What is considered an ideal Debt-Equity Ratio?

💡 Hint: Think about equal proportions of debt and equity.

Practice 4 more questions and get performance evaluation

Interactive Quizzes

Engage in quick quizzes to reinforce what you've learned and check your comprehension.

Question 1

What is the formula for the Debt-Equity Ratio?

💡 Hint: Think about what two elements of capital are compared.

Question 2

True or false: A Debt-Equity Ratio higher than 1 indicates a company is less risky.

  • True
  • False

💡 Hint: Consider what high debt means for a company.

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

A company has long-term debts of ₹150,000 and shareholders' equity of ₹100,000. Calculate the Debt-Equity Ratio and discuss its implications.

💡 Hint: What does a ratio greater than 1 signify?

Question 2

Analyze the effect on the Debt-Equity Ratio if a company pays off ₹30,000 of its long-term debt while having ₹120,000 in shareholders’ equity.

💡 Hint: How does reducing debt affect the ratio?

Challenge and get performance evaluation