Multiple choice

Equity Ratio, Debt Ratio, Debt Equity Ratio, Shareholder Equity Ratio, all these ratios are used to compute

  1. Long Term Financial Solvency

  2. Short Term Financial Solvency

  3. Capital Gearing Ratio

  4. Immediate Solvency

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Right answer because all the ratios like Equity Ratio, Debt Ratio, Debt Equity Ratio and Shareholder Equity Ratio are used to analyse  long term financial solvency.