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Examveda

Long -term solvency is indicated by

A. Liquidity ratio

B. Debt-equity ratio

C. Return coverage ratio

D. Both a and b

Answer: Option B

Solution(By Examveda Team)

Long -term solvency is indicated by Debt-equity ratio. The debt-to-equity (D/E) ratio is calculated by dividing a company's total liabilities by its shareholder equity. These numbers are available on the balance sheet of a company's financial statements.

This Question Belongs to Commerce >> Financial Management

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