The financial objective of long-term solvency is to
A) be able to pay bills when they fall due.
B) earn a satisfactory net income.
C) be able to increase stockholders' wealth.
D) be able to survive for many years.

Question

Quizplus · Accepted Answer

Long-term solvency focuses on a company's ability to remain financially stable and viable over an extended period of time, which means being able to survive for many years. While the other options (A, B, and C) are important financial objectives, they do not specifically address the idea of long-term financial viability.

The Financial Objective of Long-Term Solvency Is to