Which of the Following Is Not a Solvency Ratio

question 87

Multiple Choice

Which of the following is not a solvency ratio?

• A)Time interest earned ratio.
• B)The debt to equity ratio.
• C)The current ratio.
• D)All of the other options are solvency ratios.

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Definitions:

Stock Option Plans

Programs established by companies to give employees the right to purchase a specific number of the company's shares at a fixed price for a certain period of time.

Stock Appreciation Rights

A type of incentive or compensation mechanism provided to employees that gives the right to receive a bonus equivalent to the increase in the company’s stock price over a set period.

Compensatory

Refers to something intended to recompense or make up for a loss, injury, or inconvenience.

Stock Option Plan

A compensation strategy businesses use to grant employees the option to purchase company stock at a discounted price in the future.