Solvency ratios measure the long-term financial position of a business. Debt-Equity, Proprietary, and Interest Coverage Ratios are all solvency ratios. Operating Ratio measures operating efficiency and profitability, not solvency, so it is not computed for evaluating solvency.
Identify the ratio which is not computed for evaluating solvency of the business.
CUET UG 2023 — Accountancy Financial Statements
2023mcqeasy
Identify the ratio which is not computed for evaluating solvency of the business.
Official previous-year question
Held on 29 May 2023 · Verified 13 Jul 2026.
Options
- A
Debt-Equity Ratio
- B
Proprietary Ratio
- C
Operating Ratio
- D
Interest Coverage Ratio
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