The ______ ratios are primarily measures of returns.

Liquidity

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Activity

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Debt

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Profitability

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Solution

The correct option is A Activity
Activity ratios are primarily measures of returns. Activity ratios are financial analysis tools used to gauge the ability of a business to convert various assets, liability and capital accounts into cash or sales. The faster a business is able to convert its assets into cash or sales, the more efficient it runs.

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