Which of the following ratios provides a solvency measure that shows the margin of safety of noteholders or
bondholders and also gives an indication of the potential ability of the business to borrow additional funds on
a long-term basis?
a. ratio of fixed assets to long-term liabilities
b. ratio of net sales to assets
c. number of days' sales in receivables
d. rate earned on stockholders' equity

A. ratio of fixed assets to long-term liabilities.

Step-by-step explanation:

Solvency shows if a company can meet its long term debts or not. It is important for a company to be solvent as it can handle its debts and financial obligations.

Solvency is important to stay in business and continue operations in the near future.

1. d.90

2. e. none of these (80)

3. a. 0

4. b. 6

5. e. none of these (10)

6. a. 5

b) 1/3 * 1/5

step-by-step explanation:

each smallest part is 1/15 since the written one is 1/5 and it's divided by 3 equal parts. (1/5 )/3 = 1/15 = 1/3 * 1/5