Discussion
Which of the following is regarded as long term solvency ratio
Answer: B
The proprietary ratio is a long-term solvency ratio. It compares the proprietors' (shareholders') funds with total assets, and shows how much of the assets is financed by owners, which tells about the long-term stability of the firm. The capital turnover ratio is an activity ratio, and return on investment and return on total resources are profitability ratios. So only the proprietary ratio is a solvency ratio.
No comment is present. Be the first to comment.
Loading…
Post your comment
Please log in or register to post a comment.
Examination Categories
- SSC Exams
- Banking Exams
- Teaching Exams
- Civil Services Exams
- Railways Exams
- Engineering Recruitment Exams
- Defence Exams
- State Government Exams
- Police Exams
- Insurance Exams
- Nursing Exams
- Other Government Exams
- NRA CET
- PG Entrance Exams
- Campus Placement
- MBA Entrance Exams
- CUET and UG Entrance
- Judiciary Exams
- Regulatory Body Exams
- Software Development