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Ratio Analysis can be used to study liquidity, turnover, profitability etc., of a firm. What does Debt-Equity Ratio help to study?

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Question:

Ratio Analysis can be used to study liquidity, turnover, profitability etc., of a firm. What does Debt-Equity Ratio help to study?

A.

Solvency

B.

Liquidity

C.

Profitability

D.

Turnover

Answer» a. Solvency

Note: The above multiple-choice question is for all general and Competitive Exams in India.