Which of the Following Solvency Positions Would a Company Consider

question 44

Multiple Choice

Which of the following solvency positions would a company consider most favourable?

• A)a high debt to total assets ratio and a low times interest earned ratio
• B)a low debt to total assets ratio and a high times interest earned ratio
• C)a high debt to total assets ratio and a high times interest earned ratio
• D)a low debt to total assets ratio and a low times interest earned ratio

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Definitions:

Output

The amount of something produced by a person, machine, or industry.

Large Dams

Substantial barriers constructed across rivers or waterways to control the flow or storage of water.

Hydroelectric Power

The generation of electricity by converting the kinetic energy of moving water, typically through the use of dams or diversionary structures.

Environmental Impacts

Environmental impacts are the changes to the environment caused by human activities or natural disasters, which can be positive or negative and affect air, water, soil, and ecosystems.