Question : The long-term solvency ratio is indicated by

Option 1: current ratio

Option 2: quick ratio

Option 3: net profit ratio

Option 4: debt-equity ratio

Question : The long-term solvency ratio is indicated by

Option 1: current ratio

Option 2: quick ratio

Option 3: net profit ratio

Option 4: debt-equity ratio

Question : The short-term solvency is which of the following?

Option 1: Debtors turnover ratio

Option 2: Liquid ratio

Option 3: Stock turnover ratio

Option 4: Price earning ratio

Question : Which of the following tells long-term solvency?

Option 1: Debt equity ratio

Option 2: Proprietary ratio

Option 3: Fixed assets ratio

Option 4: All of the above

Question : Which of the following statements is incorrect?

Option 1: Debt equity ratio is calculated to assess the ability of the firm to meet its long-term liabilities.

Option 2: If the debt-equity ratio is more than that, it shows a rather risky financial position from the long-term point of view.

Option 3: debt-equity ratio of 1: 1 is considered safe.

Option 4: A high debt-equity ratio is a danger signal for long-term lenders.