Which of the Following Ratios Is a Solvency Ratio

question 77

Multiple Choice

Which of the following ratios is a solvency ratio?

• A)Net profit margin ratio.
• B)Current ratio.
• C)Asset turnover ratio.
• D)Debt to assets ratio.

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Definitions:

Outcomes Allocated

The distribution or assignment of results or benefits from a process or activity to different stakeholders or participants.

Fairness

The quality of making judgments that are impartial and free from discrimination, allowing equal treatment for all.

Power Distance

A cultural dimension that describes the extent to which individuals in a society accept or expect power inequalities between people.

Authority

The right to influence another person.