Question : Which of the following shows the Long term solvency?
Option 1: Debt/Equity Ratio
Option 2: Liquid Ratio
Option 3: Debtor Turnover Ratio
Option 4: Quick Ratio
Correct Answer: Debt/Equity Ratio
Solution : The debt-equity ratio is an indicator of long-term solvency. The debt-to-equity (D/E) ratio is derived by dividing the total long term liabilities of a corporation by the equity held by shareholders. The balance sheet of the company's financial statements is where these values are found. Hence option 1 is the correct answer.
Question : The long-term solvency ratio is indicated by
Question : The short-term solvency is which of the following?
Question : Which of the following tells long-term solvency?
Question : Which of the following statements is incorrect?
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile