Economics · Accounting Ratios
Match the accounting ratios in List I with their primary characteristics/functions in List II: List I (Ratio)List II (Description)A. Interest Coverage Ratio1. Measures long-term solvencyB. Gross Profit Ratio2. Indicates margin of safety for creditorsC. Debt-Equity Ratio3. Relationship between owners' funds and total assetsD. Proprietary Ratio4. Measures operating profitability before indirect expenses
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A−1, B−3, C−2, D−4
- 2A−2, B−3, C−1, D−4
- 3A−1, B−4, C−2, D−3
- 4A−2, B−4, C−1, D−3✓
Correct answer
A−2, B−4, C−1, D−3
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