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    Question

    Which among the following is important to assess the

    Gearing ratio? 
    A Credit extended to debtors Correct Answer Incorrect Answer
    B Credit taken from suppliers Correct Answer Incorrect Answer
    C Loan taken from bank Correct Answer Incorrect Answer
    D Interest due but not paid Correct Answer Incorrect Answer
    E Interest due but not received Correct Answer Incorrect Answer

    Solution

    Gearing refers to the fixed financial burden arising out of Long term debt. So, Loan taken from bank would be affecting the Gearing ratio. 

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