Which of the following statements about specific ratios is incorrect?
A)The net margin ratio is a profitability ratio.
B)The current ratio is a liquidity ratio.
C)The debt to assets ratio is a liquidity ratio.
D)The dividend yield is a stock market ratio.

Question

Quizplus · Accepted Answer

The debt to assets ratio is actually a solvency ratio, as it measures the amount of debt a company has in relation to its total assets and indicates the company's ability to meet its long-term debt obligations.

Which of the Following Statements About Specific Ratios Is Incorrect