Accounting · Ratio Analysis
A lower Debt-to-Equity ratio generally indicates:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Lower safety or protection to long-term creditors
- 2Higher safety or protection to long-term creditors✓
- 3No financial relationship with the risk of insolvency
- 4An increase in the financial leverage risk of the firm
Correct answer
Higher safety or protection to long-term creditors
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Accounting?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Ratio Analysis MCQs →Want more practice questions on Ratio Analysis?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Accounting · Ratio Analysis