Match the items in List-I with the items in List-II and indicate the correct answer.
| List-I | List-II |
| a. Debt-equity ratio | 1. Net profit before interest and tax/Interest on long-term loans |
| b. Proprietary ratio | 2. Equity share capital + Reserves/Preference share capital + Interest bearing finance |
| c. Interest coverage ratio | 3. Long-term debts/Shareholder's Funds |
| d. Capital gearing ratio | 4. Shareholder's Funds/Total Assets |
A. a-1, b-2, c-3, d-4
B. a-3, b-4, c-1, d-2
C. a-3, b-4, c-2, d-1
D. a-2, b-3, c-4, d-1
Answer: Option B
Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
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