___________ ratio refers to the ratios that are calculated for measuring the efficiency of operation of business based on effective utilization of resources.

Liquidity

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Solvency

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Activity

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Profitability

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Solution

The correct option is C Activity
Activity ratios refers to the ratios that are calculated for measuring the efficiency of operation of business based on effective utilization of resources. For example Asset turnover ratio, Capital turnover ratio etc.

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Similar questions

___ refers to the proportion of debt and equity used for financing the operations of a business.

In general, a lower turnover ratio highlights the under utilization of the resources accessible at the disposal of the firm. True or False

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