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 Audit interview questions  Audit Interview Questions
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 Accounting AllOther interview questions  Accounting AllOther Interview Questions
Question
what do you mean by debt equity ratio?
 Question Submitted By :: B.sathyanarayana
I also faced this Question!!     Rank Answer Posted By  
 
  Re: what do you mean by debt equity ratio?
Answer
# 1
Debt/equity ratio is equal to long-term debt divided by 
common shareholders' equity
 
Is This Answer Correct ?    6 Yes 0 No
Mariya
 
  Re: what do you mean by debt equity ratio?
Answer
# 2
Debt equity ratio: external equity/ internal equity or TD/NW
(net wroth)
A high ratio shows that claims of creditors are greater than
those of owners
A low ratio implies greater claims of owners than creditors
 
Is This Answer Correct ?    2 Yes 0 No
Kamal
 
 
 
  Re: what do you mean by debt equity ratio?
Answer
# 3
debt equity ratio is the long term debt divided by equity 
shere hjolder
 
Is This Answer Correct ?    1 Yes 0 No
Subbu
 
  Re: what do you mean by debt equity ratio?
Answer
# 4
it shows the relationship between the company's logterm 
debts to share holder's funds i.e., longterm 
debts/shareholder's funds
 
Is This Answer Correct ?    1 Yes 0 No
Pavan Kumar
 
  Re: what do you mean by debt equity ratio?
Answer
# 5
debt equity ratio=Total long term debt divided by total 
long term funds.
 
Is This Answer Correct ?    0 Yes 0 No
Ravi
 
  Re: what do you mean by debt equity ratio?
Answer
# 6
Debt/equity ratio is equal to long-term debt divided by 
common shareholders' equity
 
Is This Answer Correct ?    0 Yes 0 No
Guest
 
  Re: what do you mean by debt equity ratio?
Answer
# 7
Debt-equity ratio is the ratio debt capital and equity capital
 
Is This Answer Correct ?    0 Yes 0 No
Raj
 
  Re: what do you mean by debt equity ratio?
Answer
# 8
this ratio indicates the relative proportions of debts and 
equity in financing the assests of a firm. 

Debt equity ratio = debt/equity
 
Is This Answer Correct ?    1 Yes 1 No
Vinotha.v
 
  Re: what do you mean by debt equity ratio?
Answer
# 9
debt-equity ratio measures the long term debt and 
shareholding equity.  

this ratio is calculated below

 D/E raio= debt(long term liability)/capital employed

this ratio 2:1 is most preferable.
 
Is This Answer Correct ?    1 Yes 0 No
Mahendar
 
  Re: what do you mean by debt equity ratio?
Answer
# 10
debt-equity ratio = total debt includes short term and long 
term debt divided by total equity
 
Is This Answer Correct ?    1 Yes 1 No
Hamour
 
  Re: what do you mean by debt equity ratio?
Answer
# 11
Debt Equity Ratio is calculated to know the proportion of
Debt  and Equity being used to finance the assets of the
company.
If the ratio is greater than one, most of the items are
financed with debt, the company is in risk.
If the ratio is less than one, equity provides majority of
the financing.
 
Is This Answer Correct ?    0 Yes 0 No
Pallavi Bhatia
 
  Re: what do you mean by debt equity ratio?
Answer
# 12
Debt/Equity Ratio is calculated to know the proportion of
Debt  and Equity being used to finance the assets of the
company.
 
Is This Answer Correct ?    0 Yes 0 No
Sachin
 

 
 
 
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