There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the options given below.

Assertion (A):  Total Assets to Long-term Funds (Debt) Ratio shows the financing of assets from Long-term Borrowings.
Reason (R): The formula for calculating the ratio is Total Assets/Debt. Thus, it shows Long-term Funds invested in the assets of the company.

Both, Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

The Total Assets to Debt Ratio is calculated as the ratio of a company's total assets to its long-term debts. It is a measure of a company's leverage and indicates the proportion of total assets that are financed by long-term debt. The formula for calculating the Total Assets to Debt Ratio is as follows:
Total Assets to Debt Ratio = Total Assets / Long-term Debts
Where: Total Assets: This represents the sum of all assets on the company's balance sheet, including both current and non-current assets.
Long-term Debts: This includes all long-term liabilities, such as long-term loans, bonds, mortgages, and other long-term borrowings.