Which type of ratios measure a company's long-term debt paying ability and its financing structure?
A)Solvency
B)Liquidity
C)Profitability
D)None of these answers choices are correct.

Question

Quizplus · Accepted Answer

Solvency ratios measure a company's ability to pay off its long-term debt and also provide insight into its financing structure. Examples of solvency ratios include debt-to-equity ratio, interest coverage ratio, and debt-to-assets ratio.

Which Type of Ratios Measure a Company's Long-Term Debt Paying