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Commerce · Q977

Costing

Graduate and Post Graduate · Commerce · question 977

Q977

Assertion (A): Debt-equity ratio indicates the long-term solvency of a company. Reason (R): It measures the ability of the company to pay-off its long-term liabilities. Select the correct answer.

A.
Both (A) and (R) are correct, and (R) is the correct reason for (A)
Answer
B.
Both (A) and (R) are correct, but (R) does not explain (A) correctly
C.
(A) is correct, but (R) is incorrect
D.
(A) is incorrect, but (R) is correct

Answer: Option A

Solution

Answer: Option A
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