ratio describes the ability of a business to meet its financial obligations in the long run.

Current

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Liquidity

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Solvency

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Inventory

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Solution

The correct option is C Solvency
Solvency ratio describes the ability of a business to meet its financial obligations in the long run. It judge the long-term financial position of a company i.e., whether business is able to pay its long-term liabilities or not.

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Q. Which ratio evaluates the capability of a business to meet its long-term financial obligations?

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The liquidity of a business firm is measured by its ability to satisfy its long-term obligations as they become due. What are the ratios used for this purpose?

Q. ratios describes about the ability of the company to meet its short term financial needs.

Q. The liquidity of a business firm is measured by its ability to satisfy its long term obligations as they become due? Comment.

Q. Liquidity ratios are used to evaluate the capability of an entity to meet its financial obligations.

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ratio describes the ability of a business to meet its financial obligations in the long run.

The correct option is C SolvencySolvency ratio describes the ability of a business to meet its financial obligations in the long run. It judge the long-term financial position of a company i.e., whether business is able to pay its long-term liabilities or not.

The correct option is C Solvency
Solvency ratio describes the ability of a business to meet its financial obligations in the long run. It judge the long-term financial position of a company i.e., whether business is able to pay its long-term liabilities or not.