A measure of a company's solvency is the
A)inventory turnover ratio.
B)current ratio.
C)times interest earned ratio.
D)asset turnover ratio.

Name: A measure of a company's solvency is the A)inventory turnover ratio. B)current ratio. C)times interest earned ratio. D)asset turnover ratio.
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Question

Quizplus · Accepted Answer

The times interest earned ratio measures a company's ability to meet its debt obligations, indicating its solvency.

A Measure of a Company's Solvency Is the