Assessing ______ requires evaluating whether an organization is financially strong or in jeopardy.
A) liquidity
B) profitability
C) asset management
D) long-term solvency

Question

Quizplus · Accepted Answer

Long-term solvency refers to an organization's ability to meet its long-term financial obligations. If an organization is financially strong, it should have enough assets and cash flow to cover its long-term debts. If an organization is in jeopardy, it may struggle to meet these obligations and risk bankruptcy or default. Therefore, assessing long-term solvency is a key indication of an organization's financial health.

Assessing ______ Requires Evaluating Whether an Organization Is Financially Strong