Which of the following is an analysis used in assessing solvency?
A)Accounts receivable analysis
B)Fixed assets turnover
C)Earnings per share
D)P/E ratio

Question

Quizplus · Accepted Answer

Accounts receivable analysis is an important component of assessing solvency as it provides insight into the company's ability to collect outstanding debts and maintain a positive cash flow. It helps determine the liquidity of the company and whether it has the resources to pay off its obligations. Fixed assets turnover, earnings per share, and P/E ratio are not directly related to solvency analysis.

Which of the Following Is an Analysis Used in Assessing