Class 12 Exam  >  Class 12 Questions  >  What is the debt to equity ratio when the fol... Start Learning for Free
What is the debt to equity ratio when the following information is available Total Assets ₹ 35,00,000; Total Debts ₹ 25,00,000; Current Liabilities ₹ 8,00,000.
  • a)
    1.7:1
  • b)
    2:1
  • c)
    3:1
  • d)
    3:2
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
What is the debt to equity ratio when the following information is ava...
Debt to equity ratio = Debt/Equity
Debt = Total debt - Current liabilities = 25,00,000 - 8,00,000 = ₹ 17,00,000
Equity = Total assets - Total debts = 35,00,000 - 25,00,000 = ₹ 10,00,000
Debt to equity ratio = 17,00,000/10,00,000 = 1.7 : 1
Free Test
Community Answer
What is the debt to equity ratio when the following information is ava...
Calculation of Debt to Equity Ratio

Given:
Total Assets = $35,00,000
Total Debts = $25,00,000
Current Liabilities = $8,00,000

Calculation:
Debt to Equity Ratio = Total Debts / Total Equity

Total Equity can be calculated as Total Assets - Total Debts
Total Equity = $35,00,000 - $25,00,000 = $10,00,000

Debt to Equity Ratio = $25,00,000 / $10,00,000 = 2.5

Interpretation:
The Debt to Equity Ratio is 2.5:1, which means that for every dollar of equity, there are $2.5 of debt.
Explore Courses for Class 12 exam
What is the debt to equity ratio when the following information is available Total Assets 35,00,000; Total Debts 25,00,000; Current Liabilities 8,00,000.a)1.7:1b)2:1c)3:1d)3:2Correct answer is option 'A'. Can you explain this answer?
Question Description
What is the debt to equity ratio when the following information is available Total Assets 35,00,000; Total Debts 25,00,000; Current Liabilities 8,00,000.a)1.7:1b)2:1c)3:1d)3:2Correct answer is option 'A'. Can you explain this answer? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about What is the debt to equity ratio when the following information is available Total Assets 35,00,000; Total Debts 25,00,000; Current Liabilities 8,00,000.a)1.7:1b)2:1c)3:1d)3:2Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the debt to equity ratio when the following information is available Total Assets 35,00,000; Total Debts 25,00,000; Current Liabilities 8,00,000.a)1.7:1b)2:1c)3:1d)3:2Correct answer is option 'A'. Can you explain this answer?.
Solutions for What is the debt to equity ratio when the following information is available Total Assets 35,00,000; Total Debts 25,00,000; Current Liabilities 8,00,000.a)1.7:1b)2:1c)3:1d)3:2Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for Class 12. Download more important topics, notes, lectures and mock test series for Class 12 Exam by signing up for free.
Here you can find the meaning of What is the debt to equity ratio when the following information is available Total Assets 35,00,000; Total Debts 25,00,000; Current Liabilities 8,00,000.a)1.7:1b)2:1c)3:1d)3:2Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of What is the debt to equity ratio when the following information is available Total Assets 35,00,000; Total Debts 25,00,000; Current Liabilities 8,00,000.a)1.7:1b)2:1c)3:1d)3:2Correct answer is option 'A'. Can you explain this answer?, a detailed solution for What is the debt to equity ratio when the following information is available Total Assets 35,00,000; Total Debts 25,00,000; Current Liabilities 8,00,000.a)1.7:1b)2:1c)3:1d)3:2Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of What is the debt to equity ratio when the following information is available Total Assets 35,00,000; Total Debts 25,00,000; Current Liabilities 8,00,000.a)1.7:1b)2:1c)3:1d)3:2Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice What is the debt to equity ratio when the following information is available Total Assets 35,00,000; Total Debts 25,00,000; Current Liabilities 8,00,000.a)1.7:1b)2:1c)3:1d)3:2Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice Class 12 tests.
Explore Courses for Class 12 exam
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev