Which of the Following Ratios Provides a Solvency Measure That

Multiple Choice

Which of the following ratios provides a solvency measure that shows the margin of safety of 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) asset turnover ratio
C) number of days' sales in receivables
D) return on stockholders' equity