Question

Activity (or Turnover) Ratios comprises of all except ____________.

• A. Fixed Assets Turnover Ratio
• B. Debtors Turnover Ratio
• C. Dividend Payout Ratio
• D. Investment Turnover Ratio

Answer 1

The correct option is C Dividend Payout Ratio

Activity or Turnover Ratios exhibit the activity levels characterised by the capacity of the business to make more sales or turnover. These shall comprise following:

1. Stock Turnover

2.Debtors Turnover

3.Creditors Turnover

4.Investment Turnover

5.Fixed Assets Turnover

6.Working Capital Turnover