Which of the Following Scenarios Would Most Likely Occur with a Company

question 254

Multiple Choice

Which of the following scenarios would most likely occur with a company that has reported disappointing earnings recently but still looks to be financially stable for quite some time?

• A) High long-term solvency ratio but low profitability ratio
• B) High short-term solvency ratio but low profitability ratio
• C) High long-term solvency ratio but low activity ratio
• D) High short-term solvency ratio but low activity ratio
• E) High long-term solvency ratio but low short-term solvency ratio