Solvency Ratios Level 1 Quiz

 

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Solvency Ratios Level 1

26 questions in 10 minutes

Pass Score 70%

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Solvency ratios include the operating cash flow ratio.

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A solvency ratio of 1.5 means the company has more debt than equity.

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The solvency ratio is calculated using only long-term liabilities.

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Solvency ratios are used to evaluate a company's liquidity.

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Companies with high solvency ratios are typically viewed as less risky.

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Solvency ratios can help assess a company's ability to pay off its long-term debts.

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Solvency ratios are calculated using current liabilities and current assets.

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Solvency ratios can be influenced by a company's capital structure.

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Solvency ratios are not useful for comparing companies in different industries.

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Solvency ratios are calculated to determine the short-term liquidity of a business.

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Solvency ratios are primarily used to evaluate short-term financial performance.

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The debt-to-assets ratio is a solvency ratio.

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Solvency ratios measure a company's ability to meet its short-term obligations.

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The proprietary ratio is a type of solvency ratio.

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Solvency ratios include the current ratio and quick ratio.

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The debt ratio and debt-to-equity ratio are both solvency ratios.

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The long-term debt to equity ratio is a solvency ratio.

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Solvency ratios are less important than liquidity ratios in financial analysis.

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The debt-to-capital ratio is not considered a solvency ratio.

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The quick ratio is an example of a solvency ratio.

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The debt-to-equity ratio is a common solvency ratio.

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The interest coverage ratio is a type of solvency ratio.

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A lower solvency ratio generally indicates better financial stability.

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A solvency ratio of less than 1 indicates more debt relative to equity.

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A high solvency ratio indicates a higher risk of bankruptcy.

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The equity ratio is a solvency ratio.

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