Vidyalelo
Commerce · Q266

Costing

Graduate and Post Graduate · Commerce · question 266

Q266

Capital gearing ratio is ___________.

A.
Market test ratio
B.
Long-term solvency ratio
Answer
C.
Liquid ratio
D.
Turnover ratio

Answer: Option B

Solution

Answer: Option B
Solution:
Capital gearing ratio is Long-term solvency ratio. The term capital gearing refers to describe the relationship between fixed interest and/or fixed dividend bearing securities and the equity shareholders’ fund.