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Which of the following ratios is used to evaluate the company's long-term paying ability? A. Debt...

Which of the following ratios is used to evaluate the company's long-term paying ability?

A. Debt to asset ratio

B. Inventory turnover

C. Current ratio

D. Return on equity

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Answer #1

Option A

Debt to asset ratio
Generally, Solvency ratios measure the long term paying ability of an entity. Debt to assets ratio measures the amount of assets which are financed through debt
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