Liquid ratio measures short-term solvency, and profitability ratios measure earning power, not solvency. Debt-equity ratio, which compares outside long-term debt to owners' funds, is the standard indicator of long-term solvency, reflecting the firm's ability to meet its long-term obligations.
Long-term solvency is indicated by:
CUET UG 2022 — Accountancy Financial Statements
2022mcqmedium
Long-term solvency is indicated by:
Official previous-year question
Held on 8 Aug 2022 · Verified 13 Jul 2026.
Options
- A
liquid ratio
- B
debt-equity ratio
- C
capital-gearing ratio
- D
profitability ratio
Did you get this right?
Sign in to track your attempts and accuracy.
Your note
Sign in to keep a private note on this question. Nothing you write is ever public.
CUET UG Financial Statements in other years
More CUET UG Financial Statements questions
Match List-I with List-II | List-I | List-II | |---|---| | (A) SHAREHOLDERS FUND | (I) Non-current investments | | (B) CURRENT LIABILITIES | (II) Reserves and Surplus | | (C) CURRENT ASSET | (III) Trade Payables | | (D) FIXED ASSET | (IV) Inventories | Choose the correct answer from the options given below:
2025easy
Arrange different items of Balance Sheet as per revised Schedule III to the Companies Act, 2013- (A) Shareholder's Funds (B) Non-Current Assets (C) Current Liabilities (D) Share Application money pending allotment (E) Current Assets Choose the correct answer from the options given below:
2025medium
Auditor issues Annual report of company refering to___.
2025easy
Profit after tax and interest is Rs 1,60,000. Tax rate is 20% 10% long term borrowing is Rs 20,00,000 Find profit before tax and after interest
2025easy
'Vertical analysis' is also known as: (A) Ratio Analysis (B) Cash Flow Analysis (C) Comparative Statement Analysis (D) Common Size Statement Analysis Choose the correct answer from the options given below:
2025easy
Other Accountancy topics for CUET UG
Keep practicing Financial Statements
Work through every CUET UG Financial Statements PYQ, year by year.