Which of the following measures would assist in assessing the solvency of a company?
A) Debt-to-assets
B) Fixed asset turnover
C) Return on equity
D) Current ratio

Question

Quizplus · Accepted Answer

The debt-to-assets ratio is a measure of a company's financial leverage and indicates the proportion of a company's assets that are financed by debt, which is directly related to assessing solvency.

Which of the Following Measures Would Assist in Assessing the Solvency