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JAMB Accounting 2015 Objective — Question 44

Question 44 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2015 Objective paper, with the correct answer and a full explanation.

To compute the gearing ratio, divide

A. profit by capital employed
B. current assets by current liability
C. profit by total assets
D. long term debt by equity capitalCorrect

Explanation

Gearing ratio = long term debt / equity capital.

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