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.

On comparison of the balance sheet of the firm for two years, it is observed that its Debt Equity Ratio has increased from 1.5:1 to 2:1 but its current ratio and the total balance sheet has not changed. Which of the following is possibly true in this regard:-

a. The amount of Net worth has increased.
b. The amount of long term liabilities has declined.
c. The amount of Intangible assets has decreased.
d. The long term liabilities have increased our net worth declined or intangible assets have increased.

Capital 40, Debentures and Term loans 50, Creditors 10, Bank Credit 30, Goodwill 10, Pre-paid expenses 10, Stocks 20, and Debtors 25. Choose the one which is not correct.
a. Current Ratio = 1.38:1
b. Quick Ratio = 0.63:1
c. Debt Equity Ratio = 1.67:1
d. None of the above.

Net profit 60, Depreciation 40, Term loan interest 20, Term loan balance 300, Term Loan Instalment 40, Capital and Reserves 150?
a. DSCR is 2 and Debt Equity Ratio is 2:1
b. DSCR is 1.5 and Debt Equity Ratio is 2:1
c. DSCR is 2 and Debt Equity Ratio is 1.5:1
d. DSCR ratio 1:8 and Debt Equity Ratio is 1.7:1

Term Loan Instalment is 60, Term Loan is 20 and Net Profit is 80. If the DSCR is 2, the amount of Depreciation will be:
a. Adequate information not available
b. 60
c. 40
d. 20

Long term Sources are 30 and Debt Equity Ratio is 3:1. If there are no Intangible Assets, then Net Worth is?
a. 20
b. 15
c. 10
d. Inadequate Information.