You have a large residual fund which you wish to invest in a firm for long term. Which of the following ratio would be most appropriate for you to decide
A. $$\frac{{{\text{Gross debt}}}}{{{\text{Net debt}}}}$$
B. $$\frac{{{\text{Long term debt}}}}{{{\text{Gross capitalization}}}}$$
C. $$\frac{{{\text{Gross debt}}}}{{{\text{Gross equity share capital}}}}$$
D. $$\frac{{{\text{Net average profit}}}}{{{\text{Gross share capital}}}}$$
Answer: Option B
This Question Belongs to Commerce >> Accounting
Accounting provides information on
A. Cost and income for managers
B. Company's tax liability for a particular year
C. Financial conditions of an institutions
D. All of the above
The long term assets that have no physical existence but are rights that have value is known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
Patents, Copyrights and Trademarks are
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
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