A ratio that measures solvency is:
A) Net assets/expenses
B) Program expense ratio
C) Net debt to assets
D) Fundraising efficiency

Name: A ratio that measures solvency is: A) Net assets/expenses B) Program expense ratio C) Net debt to assets D) Fundraising efficiency
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Question

Quizplus · Accepted Answer

Net debt to assets ratio measures the extent to which an organization relies on borrowed funds to finance its activities. A higher ratio indicates higher financial risk and lower solvency.

A Ratio That Measures Solvency Is