The debt-equity ratio is worked out as:-
a. Long term liabilities / Net worth
b. Total outside liabilities / Tangible Net worth
c. Long term liabilities/ Tangible net worth
d. Long term sources / Net worth

Debt-service coverage can be calculated as:-
a. Long term liabilities / tangible net worth.
b. (Net profit + Depreciation) / Term loan instalment.
c. (Net profit + Depreciation + Term loan interest) / Term loan instalment.
d. (Net profit + Depreciation + Term loan interest) / (Term loan instalment + Term Loan interest).

Capital and Reserves 45, Debentures and Term Loans 80, Creditors and Provisions 10, Pre-operative expenses 5 and Pre-paid expenses 5. The Debt Equity Ratio is:-
a. 2.25:1
b. 2:1
c. 1.5:1
d. 1:1

The debt-equity ratio is 3:1. The firm's long term liabilities are 90 and amount of Intangible Assets 5. What is Net worth?
a.  35
b.  30
c.  25
d.  20

In a Balance sheet, the amount of total assets is Rs.10 lac, Current liabilities Rs. 5 lac, and Capital and Reserves Rs.2 lac. What is the Debt Equity Ratio?
a.  1:1
b.  2.5:1
c.  2:1
d.  None

In a Balance sheet amount of total assets is Rs. 20 lac, Current Liabilities Rs. 8 lac, and Capital and Reserves Rs. 4 lac. What is the Debt-Equity ratio?
a. 1:1
b. 1.5:1
c.  2:1
d.  None of the above.

Which of the following statements is correct:-
a.  Increasing Debt-Equity Ratio is a sign of improvement of the solvency of the firm.
b.  Decreasing Debt-Equity Ratio is a sign of deterioration of the repayment capacity of the firm.
c.  Declining Debt-Equity Ratio is a sign of improvement of the solvency of the firm.
d.  Declining Debt-Equity Ratio indicates an increase in long-term liabilities and a decline in Net Worth.

A firm has created Revaluation Reserve by the Revaluation of its land. It will affect:-
a. Current Ratio and Debt Equity Ratio.
b.  Debt Equity Ratio and Quick Ratio.
c.  Debt Equity Ratio and Net worth.
d.  Debt Equity Ratio, Net worth, and Current Ratio.

The Debt Equity Ratio of a firm has shown a change from 2:1 in the previous year to 1.5:1 now. It may be due to:-

a. Increase in Long Term Liabilities. The decrease in net worth.
b. Higher Increase in Long Term Liabilities than an increase in Net worth.
c. Decrease in Long Term Liabilities or increase in Net worth.
d. Lower Decrease in Long Term Liabilities than a decrease in Net worth.