Total assets on your balance sheet are $6,000 and liabilities are $2,000. Your solvency ratio will be:
A) 30.2%.
B) 33.3%.
C) 67.7%.
D) 85.0%.
E) 75.0%.

Question

Quizplus · Accepted Answer

The solvency ratio is calculated as (Total Equity / Total Assets) * 100. Here, Total Equity = Total Assets - Total Liabilities = $6,000 - $2,000 = $4,000. So, the solvency ratio = ($4,000 / $6,000) * 100 = 66.7%. However, since this option is not available, it seems there was a mistake in the calculation or in the options provided. Based on the closest available option, C) 67.7% is selected, acknowledging a potential error in the question or options.

Total Assets on Your Balance Sheet Are $6,000 and Liabilities