Which of the following scenarios would MOST likely occur with a company that has reported disappointing earnings recently but still looks to be financially stable for quite some time?
A) high long-term solvency ratio but low profitability ratio
B) high short-term solvency ratio but low profitability ratio
C) high long-term solvency ratio but low activity ratio
D) high short-term solvency ratio but low activity ratio
E) high long-term solvency ratio but low short-term solvency ratio

Question

Quizplus · Accepted Answer

A)Many of these situations may apply, but this one is the most certain.

Which of the Following Scenarios Would MOST Likely Occur with a Company