Which of the following is not a solvency ratio?
A)Time interest earned ratio.
B)The debt to equity ratio.
C)The current ratio.

Name: Which of the following is not a solvency ratio? A)Time interest earned ratio. B)The debt to equity ratio. C)The current ratio.
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Question

Quizplus · Accepted Answer

The current ratio is a liquidity ratio, not a solvency ratio. Solvency ratios measure a company's ability to meet its long-term obligations and include ratios such as the debt to equity ratio and the time interest earned ratio.

Which of the Following Is Not a Solvency Ratio