Which of the Following Ratios Provides a Solvency Measure That

question 164

Multiple Choice

Which of the following ratios provides a solvency measure that shows the margin of safety of bondholders and also gives an indication of the potential ability of the business to borrow additional funds on a long-term basis?

• A) ratio of fixed assets to long-term liabilities
• B) asset turnover ratio
• C) number of days' sales in receivables
• D) return on stockholders' equity

Understand the concept of evidence-based management.

Explain the importance and mechanisms of delegation in organizations.

Grasp the principles of organizational culture and workforce diversity.

Comprehend the significance of reciprocity in organizational behavior.

---

Definitions:

Orally

Expressed in spoken rather than written words; pertaining to verbal communication.

Access

The ability or right to enter, approach, or use something, such as a building, information, or a service.

Period of Years

A specified duration or length of time, often used in legal contexts to describe the term of a contract or agreement.

Implied Warranty of Habitability

A legal doctrine that ensures rental properties meet basic living and safety standards.