If your total assets equal $87,000 and your total liabilities equal $10,000, your solvency ratio is:
A) 11.5%.
B) 13.0%.
C) 77.0%.
D) 87.0%.
E) 88.5%.

Name: If your total assets equal $87,000 and your total liabilities equal $10,000, your solvency ratio is: A) 11.5%. B) 13.0%. C) 77.0%. D) 87.0%. E) 88.5%.
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Question

Quizplus · Accepted Answer

The solvency ratio is calculated as (Total Assets - Total Liabilities) / Total Assets. Here, it is ($87,000 - $10,000) / $87,000 = $77,000 / $87,000 = 88.5%.

If Your Total Assets Equal $87,000 and Your Total Liabilities