Solvency ratio data are primarily concerned with the ability of a company to:
A)produce profits.
B)handle its debt.
C)manage its cash flow.
D)provide income for shareholders.

Question

Quizplus · Accepted Answer

Solvency ratio data are a measure of a company's ability to handle its debt, specifically to meet its long-term financial obligations. It assesses whether a company's assets are enough to cover its liabilities in the long term.

Solvency Ratio Data Are Primarily Concerned with the Ability of a Company