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______ ratios are calculated to determine the ability of the business to service its debt in the long run. - Accountancy

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Question

______ ratios are calculated to determine the ability of the business to service its debt in the long run.

Options

  • Profitability

  • Solvency

  • Liquidity

  • Turnover

MCQ
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Solution

Solvency ratios are calculated to determine the ability of the business to service its debt in the long run.

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Chapter 14: Ratio Analysis - OBJECTIVE TYPE QUESTIONS [Page 14.165]
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