A common measure of long-term solvency is

Name: A common measure of long-term solvency is
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The debt to assets ratio measures the percentage of total assets that have been financed by debt. A higher debt to assets ratio indicates a higher level of risk and lower long-term solvency as the company may struggle to meet its debt obligations in the long run. Therefore, a lower debt to assets ratio is preferred for long-term solvency.

A Common Measure of Long-Term Solvency Is