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How many of these ratios are used to evaluate long-term financial stability? Debt ratio Equity ratio Capitalization ratio Current ratio Acid test ratio a) 2

How many of these ratios are used to evaluate long-term financial stability?

  • Debt ratio
  • Equity ratio
  • Capitalization ratio
  • Current ratio
  • Acid test ratio

a) 2

b) 3

c) 4

d) 5

I don't know the answer. My attempted answer is that debt ratio and equity ratio is long-term. But current ratio and acid test ratio is short-term. I am not sure if capitalization ratio is long-term or not. Therefore, I think the answer is at least 2.

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