Which of these are alternative measures of gearing?
A) total liabilities/total assets
B) long-term liabilities/ total owners' equity
C) total liabilities/total owners' equity
D) All are alternative measures of gearing.

Question

Quizplus · Accepted Answer

All options (A, B, and C) represent different ways to calculate gearing, which is a measure of a company's financial leverage. Gearing ratios compare the owner's equity or capital to borrowed funds, indicating the degree to which a firm's operations are funded by debt versus shareholders' equity.

Which of These Are Alternative Measures of Gearing