Practicing Success
These ratios are calculated to determine ability to meet contractual obligations: A. Proprietary Ratio Choose the correct answer from the options given below: |
A, B and D only A, C and E only A, D and E only A, B and E only |
A, C and E only |
The correct answer is Option (2) - A, C and E only. Solvency ratios focus on assessing a business's capability to fulfill its long-term debt obligations rather than short-term ones. Solvency ratios are calculated to determine the ability of the business to service its debt in the long run. *OTHERS ARE ACTIVITY RATIO. |