Question

Alphabet Inc. has total liabilities equal to Rs. 3.500.000 and total assets equal to Rs. 5,000,000.
Compute Alphabet's asset-to-equity ratio?​

Answer 1

Answer:

Given: total labilities- 35,00,000

            total assets - 50,00,000

to find: asset to equity ratio

Explanation:

     asset-to-equity = total assets/total liabilities

                                = 35,00,000/50,00,000

                                = 0.7

Answer 2

asset-to-equity ratio

Given

Total liabilities and Total assets

To find

Asset to equity ratio

Solution

Asset to equity = Total assets /Total liabilities

Asset to equity =5,000,000/3,500,000

Asset to equity = 10/7

So ,Asset to equity ratio = 10:7

Remember

• Assets are to be written on the company's balance sheet.
• Written on the left side of balance sheet.
• Liability is the sum of money that is to be paid.
• Written on the right side of the balance sheet.