Shareholders Funds / Total Assets = .

Liquidity ratio

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Solvency ratio

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Profitability ratio

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None of these

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Solution

The correct option is B Solvency ratio
(Shareholders Funds / Total Assets) = Solvency ratio (Proprietary ratio ). It indicates the proportion of total assets financed by shareholders whether equity or preference or both.
Shareholders funds include Equity share capital + Preference share capital + Reserves and surplus.
For such ratios, total assets exclude fictitious assets and losses.

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Similar questions

Q. = Shareholders' Fund / Total Assets

_______ expresses relationship of proprietor’s (shareholders) funds to total assets.

Apply common size analysis to ABC Company's Shareholders' Fund given the following information:
Selling expenses = Rs. 60,000; total revenues = Rs. 2,50,000; Shareholders' Fund = Rs. 1,25,000, Total assets = Rs. 4,25,000; Total liabilities = Rs 3,00,000.

Q. Calculate Working Capital Turnover Ratio from the following information:
Revenue from Operations ₹ 30,00,000; Current Assets ₹ 12,50,000; Total Assets ₹ 20,00,000; Non-current Liabilities ₹ 10,00,000, Shareholders' Funds ₹ 5,00,000.

Q. From the following calculate:

(a) Current Ratio; and
(b) Working Capital Turnover Ratio.

		₹
(i)	Revenue from Operations	1,50,000
(ii)	Total Assets	1,00,000
(iii)	Shareholders' Funds	60,000
(iv)	Non-current Liabilities	20,000
(v)	Non-current Assets	50,000

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