Question

In: Accounting

Solvency ratios measure a company's general financial performance. a company's cash flow. a company's liquidity. a...

Solvency ratios measure

a company's general financial performance.

a company's cash flow.

a company's liquidity.

a company's ability to survive over the long term.

Solutions

Expert Solution

Option (D) is Correct.

Solvency Ratios Measure A Companys Ability to Survive over the long term.

It Measures the company's ability to meet its long term obligations

The Stronger the ratio indicates the financial strength of company


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