Using the Formula, Gearing Ratio = Long-Term Liabilities/ (Shareholders' Funds

question 4

Multiple Choice

Using the formula, gearing ratio = long-term liabilities/ (shareholders' funds + long-term liabilities) × 100/1, calculate the gearing ratio from the following information. Long-term liabilities $18m, Shareholders' funds $14m.

• A)128%.
• B)56%.
• C)78%.
• D)44%.

---

Definitions:

Throat

The anterior part of the neck, starting from the mouth and nasal cavity down to the larynx and esophagus, serving as a pathway for food and air.

Vitamin A

A fat-soluble vitamin important for growth, immune system function, and eye health.

Excess

An amount or quantity greater than what is considered normal or sufficient.

Pruritus

The medical term for itching, a common symptom causing the desire or reflex to scratch.