Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Long-term solvency
A)Also know as the quick ratio.
B)Current assets divided by current liabilities.
C)Refers to riskiness of a company with regard to the amount of liabilities in its capital structure.
D)Relates to the amount of time before an asset is converted to cash or a liability is paid.
E)If four to one, 80% of assets are debt-financed.

Question

Quizplus · Accepted Answer

DC) Long-term solvency refers to the riskiness of a company with regard to the amount of liabilities in its capital structure. It assesses a company's ability to meet its long-term financial obligations and thus is directly related to the composition of its capital structure.D) Long-term solvency also relates to the amount of time before an asset is converted to cash or a liability is paid. This aspect of solvency is concerned with the company's ability to manage its long-term financial health, ensuring that assets can be liquidated or converted to cash in time to meet long-term liabilities.

Listed Below Are Five Terms Followed by a List of Phrases