Which of the Following Ratios Is Not a Test of Solvency

question 65

Multiple Choice

Which of the following ratios is not a test of solvency?

• A) Debt to equity ratio.
• B) Cash coverage ratio.
• C) Times interest earned ratio.
• D) Earnings per share ratio.

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Definitions:

General Adaptation Syndrome

A three-stage response (alarm, resistance, exhaustion) that the body goes through when under stress, as proposed by Hans Selye.

Resistance Phase

The second stage of the general adaptation syndrome, characterized by the body's adaptation to a continuous stressor and an attempt to restore homeostasis.

Minor Frustrations

Small, often daily, annoyances or irritations that can accumulate and affect mood or well-being.

Realistic Optimists

Individuals who maintain a positive outlook on life while still being grounded in reality, acknowledging potential obstacles and planning accordingly.