Accounts of a Single Type Are Kept in This Ledger

question 17

Multiple Choice

Accounts of a single type are kept in this ledger.

• A) supplemental ledger.
• B) additional ledger.
• C) subsidiary ledger.
• D) None of these answers are correct.

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Definitions:

Solvency

The ability of a business to meet its long-term debts and financial obligations.

Liquidity Ratio

A financial metric used to determine a company's ability to pay off its short-term liabilities with its available liquid assets.

Profitability Ratio

Financial metrics that are used to assess a business's ability to generate income relative to its revenue, assets, or equity.

Solvency Ratio

Solvency Ratio indicates a company's ability to meet its long-term debts and obligations, measuring the size of its after-tax income relative to its liabilities.