Which of the following is a leverage ratio?
A. Debt equity ratio
B. Current ratio
C. Quick ratio
D. Earning power
Answer: Option A
Solution(By Examveda Team)
Debt equity ratio is a leverage ratio. The debt-to-equity ratio (D/E) is a financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets. Closely related to leveraging, the ratio is also known as risk, gearing or leverage.This Question Belongs to Commerce >> Accounting
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