Practice Solvency Ratios - 1.4.2 | 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: Look for the relationship between equity and debt.

Question 2

Easy

What does a high Interest Coverage Ratio indicate?

💡 Hint: Think about the company's ability to meet its interest obligations.

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 does the Debt-Equity Ratio measure?

  • Liquidity
  • Financial leverage
  • Profitability

💡 Hint: Consider how a company funds its operations.

Question 2

True or False: A higher Interest Coverage Ratio is considered better.

  • True
  • False

💡 Hint: Think about financial obligation management.

Solve and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

A company has Total Assets of ₹500,000 and Long-Term Debt of ₹200,000. Calculate the Total Assets to Debt Ratio and interpret the result.

💡 Hint: Think about how many times total assets can cover the debt.

Question 2

If a firm has EBIT of ₹300,000 and interest of ₹100,000, calculate the Interest Coverage Ratio and explain what that means for the firm.

💡 Hint: Relate this to the ability to handle financial obligations.

Challenge and get performance evaluation