Ratios that measure a firm's financial leverage are known as _____ ratios.
A)asset management
B)long-term solvency
C)short-term solvency
D)profitability
E)book value

Question

Quizplus · Accepted Answer

Long-term solvency ratios measure a firm's ability to meet its long-term obligations and are also referred to as leverage ratios as they indicate the level of debt used in the capital structure of the company. Examples include debt-to-equity ratio and interest coverage ratio.

Ratios That Measure a Firm's Financial Leverage Are Known as _____