Accounting for IGCSE & O level - Advanced Principles (Section 8 - No. 28)
What can you use to measure the long-term debts of a business?
ROCE.
Liquidity ratios.
Gearing ratios.
Efficiency ratios.
Uitleg
Gearing ratios, (also known as leverage ratios), are the most useful in determining whether a company has sufficient equity to cover its debts.