Which of the Following Is Not a Solvency Ratio

question 86

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:

Chattel Mortgage

A legal arrangement where personal property is used as security for a loan, without the borrower surrendering possession of the property.

Secured Creditor

A lender who is given a specific asset as collateral for a loan, providing them with the right to claim said asset if the borrower defaults.

Sale Proceedings

The process and actions taken to complete the sale of assets, including the distribution of the proceeds from the sale.

Foreclosure

The legal process by which a lender seizes and sells a property after the borrower fails to meet repayment obligations.