Question

12. The ratio of shareholders funds to total assets of the company is called
(A) Debt-equity ratio
(B) Economic equity ratio
(C) Liquidity ratio
(D) None of the above​

Answer 1

Answer:

none of the above

because,

$\frac{shareholders \: funds}{total \: assets}= proprietory \: ratio$

proprietary ratio is not given in the options so, none of the above is the answer

Answer 2

It is known as the Equity ratio.

• It describes the total of the firm's assets that have been created by the issuance of equity shares rather than debt.
• The formula for the ratio is written as - Equity = Shareholder's Funds/ Total assets
• The sum of assets on which shareholders have a residual claim is represented by the outcome.