Which of the Following Rations Considers the Relationship Between Equity

question 1

Multiple Choice

Which of the following rations considers the relationship between equity and long-term borrowing?

• A) Quick ratio
• B) Current ratio
• C) Capital gearing ratio
• D) ROCE

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Definitions:

Reliability

The consistency and stability of a measurement over time, indicating the degree to which an instrument or procedure repeatedly produces the same result under the same conditions.

Reactivity

The phenomenon where subjects alter their behavior due to the awareness of being observed.

Variability

The amount of dispersion of scores about some central value.

Pearson Product-moment

A correlation coefficient that measures the linear correlation between two variables, indicating the strength and direction of their relationship.