Which of the following ratios is a solvency ratio?
A)Net profit margin ratio.
B)Current ratio.
C)Asset turnover ratio.
D)Debt to assets ratio.

Name: Which of the following ratios is a solvency ratio? A)Net profit margin ratio. B)Current ratio. C)Asset turnover ratio. D)Debt to assets ratio.
Brand: Quizplus
Rating: 4.8 (44 reviews)

Question

Quizplus · Accepted Answer

The debt to assets ratio is a solvency ratio that measures the extent to which assets have been financed by debt. It indicates the company's ability to repay its long-term debt.

Which of the Following Ratios Is a Solvency Ratio