Practicing Success
Following is the Balance Sheet of Titanic Ltd. as at March 31, 2022.
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The..................ratio provides the information critical to the survival of the firm. |
Liquidity Activity Solvency Profitability |
Solvency |
Solvency of business is determined by its ability to meet its contractual obligations towards stakeholders, particularly towards external stakeholders, and the ratios calculated to measure solvency position are known as ‘Solvency Ratios’. These are essentially long-term in nature. Solvency ratio provide the information critical to the long-term operation of the firm. Therefore, the solvency ratio provides the information critical to the survival of the firm. |