Which of the following is not used when analyzing long-term solvency?
A) Times interest earned ratio.
B) Debt to equity ratio.
C) Acid-test ratio.
D) Total liabilities.

Name: Which of the following is not used when analyzing long-term solvency? A) Times interest earned ratio. B) Debt to equity ratio. C) Acid-test ratio. D) Total liabilities.
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Question

Quizplus · Accepted Answer

The acid-test ratio is used to measure short-term liquidity, not long-term solvency. The other options are commonly used in analyzing long-term solvency.

Which of the Following Is Not Used When Analyzing Long-Term