Asked by
Tamzidul Islam
on Dec 16, 2024
Verified
A useful measure of solvency is the
A) current ratio.
B) price-earnings ratio.
C) basic earnings per share.
D) debt to total assets.
Measure Of Solvency
A measure of solvency is an assessment of an entity's capability to meet its long-term financial obligations, indicating its financial stability and health.
Debt To Total Assets
A financial ratio that measures the proportion of a company's assets that are financed through debt.
- Assess the long-term solvency of a corporation by evaluating its financial ratios.
Verified Answer
HS
Learning Objectives
- Assess the long-term solvency of a corporation by evaluating its financial ratios.