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    Accounting Study Set 2
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    Exam 16: Liabilities
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    A Capitalisation Ratio of 2:1 Compared to 2
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A Capitalisation Ratio of 2:1 Compared to 2

Question 21

Question 21

Multiple Choice

A capitalisation ratio of 2:1 compared to 2.5:1 means:


A) a greater dependency on debt.
B) a lesser dependency on debt.
C) a lower level of gearing.
D) a higher level of equity.

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