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P2 C5 ACCOUNTNG RATIOS AND ANALYSIS — Elements of Account STD 12 Commerce — Question

Gujarat BoardEnglish MediumSTD 12 CommerceElements of AccountP2 C5 ACCOUNTNG RATIOS AND ANALYSIS1 Mark
Question
What is the aim of finding out solvency ratio?
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Answer

Solvency ratio is used to measure, how far the business entity is competent enough to pay long' term liabilities.

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