Practicing Success
Long-term debts are equal to........ |
Long term provisions Long term borrowings Non- Current assets + Reserves Long term provisions & Long term borrowings |
Long term provisions & Long term borrowings |
The correct answer is option 4- Long term provisions & Long term borrowings. Long term debts include Long term borrowings and Long term provisions which mature after one year. Long term debts are used to calculate the debt-equity ratio where debt are long term debts. |