Ratios that measure a firm's financial leverage are known as _____ ratios.
A) Asset management.
B) Long-term solvency.
C) Short-term solvency.
D) Profitability.
E) Market value

Question

Quizplus · Accepted Answer

Long-term solvency ratios, also known as financial leverage ratios, measure a firm's ability to meet its long-term obligations. These ratios provide insight into the financial structure of the firm, including its reliance on debt financing.

Ratios That Measure a Firm's Financial Leverage Are Known as _____