Analysts Use Various Different Ratios to Assess a Company's Long-Term

question 56

Multiple Choice

Analysts use various different ratios to assess a company's long-term solvency. Which of these ratios is typically measured using average data for the year, rather than year-end data?

• A) Current liabilities to assets ratio
• B) Long term debt to equity ratio
• C) Liabilities to equity ratio
• D) Capital structure leverage ratio

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Definitions:

Sense Of Responsibility

The feeling or belief that one is accountable for their actions or has an obligation to perform certain tasks.

Behaviors

The range of actions and mannerisms made by individuals, organisms, systems, or artificial entities in conjunction with their environment, which includes the other systems or organisms around as well as the physical environment.

Personally Disapprove

Personally Disapprove means to hold a negative opinion about something based on one's own beliefs or values.

Personally Approve

A process or action whereby an individual gives their direct and explicit approval or consent.