Solvency refers to the
A) ability of an enterprise to pay its debts as they mature.
B) amount of time that is expected to elapse until an asset is realized.
C) amount of time that is expected to elapse until a liability has to be paid.
D) amount of time that is expected to elapse until an asset is converted into cash.

Question

Quizplus · Accepted Answer

Solvency is the ability of an enterprise to meet its long-term financial commitments and pay off its long-term debts as they come due.

Solvency Refers to the