The 'Proprietary Ratio' establishes relationship between: MCQ with Answer and Explanation

The 'Proprietary Ratio' establishes relationship between:
A. Debt and equity
B. Sales and debtors
C. Proprietors' funds and total assets
D. Current assets and current liabilities
Answer: Option C
Solution (By JKSSB Mock Tests)
Proprietary ratio = Shareholders' funds / Total assets, indicating the proportion of assets financed by owners.

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Practice More Accountancy and Book Keeping Questions

Question #1
Which of the following decisions relates to determining the optimal capital structure?
A. Investment Decision
B. Financing Decision
C. Liquidity Decision
D. Dividend Decision

Correct Answer: Option B


Explanation:
The financing decision involves choosing the right mix of debt and equity (capital structure) to minimize the overall cost of capital.

Question #2
S1: The Reserve Bank of India (RBI) is the central bank of India. S2: RBI regulates the entire financial system of India. Which statement(s) is/are correct?
A. S2 only
B. Neither S1 nor S2
C. Both S1 and S2
D. S1 only

Correct Answer: Option C


Explanation:
RBI is the central bank, established under the RBI Act, 1934. It regulates the monetary policy, banking system, and foreign exchange, effectively regulating the core of the Indian financial system. Both statements are correct.

Question #3
The 'E-way Bill' is generated through the portal:
A. MCA portal
B. Income Tax portal
C. GSTN portal (ewaybillgst.gov.in)
D. Customs portal

Correct Answer: Option C


Explanation:
E-way bill is generated on the dedicated portal ewaybillgst.gov.in.