Which of the Following Statements About Liquidity and Solvency Ratios

question 136

Multiple Choice

Which of the following statements about liquidity and solvency ratios is correct?

• A)Unlike solvency ratios,liquidity ratios relate to the company's long-run survival.
• B)Both liquidity ratios and solvency ratios measure a company's ability to meet its financial obligations.
• C)Liquidity ratios include the return on equity ratio and the times interest earned ratio.
• D)Solvency ratios include the current ratio and the net profit margin ratio.

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