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The ______ ratios provide the information critical to the long run operation to the firm.

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Question

The ______ ratios provide the information critical to the long run operation to the firm.

Options

  • liquidity

  • activity 

  • solvency 

  • profitability

MCQ
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Solution

The solvency ratios provide the information critical to the long run operation to the firm.

Explanation:

The Solvency Ratio is one of the many ratios used to assess a company's ability to pay its long-term debts.

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Chapter 5: Accounting Ratios - Intext Questions [Page 222]

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NCERT Accountancy Company Accounts and Analysis of Financial Statements [English] Class 12
Chapter 5 Accounting Ratios
Intext Questions | Q (vi) | Page 222
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