Which of the Following Ratios Is Used to Evaluate Solvency

question 5

Multiple Choice

Which of the following ratios is used to evaluate solvency?

• A)Earnings per share.
• B)Fixed asset turnover.
• C)Debt-to-assets.
• D)Quick ratio.

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Definitions:

Property Distribution

The division of property assets among beneficiaries or heirs according to a will or the law of intestacy.

Spendthrift Trust

A trust designed to provide a beneficiary with income while protecting the trust assets from being claimed by creditors or the beneficiary's poor spending habits.

Trust Assets

Assets that are held and managed by a trust for the benefit of the trust's beneficiaries.

Investment Professional

an individual or organization specialized in advising clients on where and how to invest their money to achieve financial growth.