Which type of financial ratio tells you how well a company can cover its long-termliabilities?a) efficiencyb) liquidityOc) solvencyO d)profitabilitye)profitability and efficiency

Financial ratios: Financial ratios are performance measurement methods used by the company to…

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Accounting

Which type of financial ratio tells you how well a company can cover its long-term liabilities?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Which type of financial ratio tells you how well a company can cover its long-term
liabilities?
a) efficiency
b) liquidity
Oc) solvency
O d)
profitability
e)
profitability and efficiency

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