Lack of Long-Term Solvency Refers To

question 94

Multiple Choice

Lack of long-term solvency refers to:

• A)Risk of nonpayment relative to liabilities in the capital structure.
• B)The length of time before long-term debt becomes due.
• C)The ability to refinance long-term debt when it becomes due.
• D)Long-term assets.

---

Definitions:

Revenues

The total amount of money received by the company for goods sold or services provided during a specific time period.

Net Income

The total profit of a business after deducting all expenses, taxes, and losses, indicating its financial performance over a reporting period.

Liabilities

Financial obligations or debts that an entity owes to external parties.

Equity

The value of an owner's interest in a property or a company, after all debts and other obligations have been accounted for.