Which ratios are calculated for measuring the efficiency of operation of business based on effective utilisation of resources?
Activity ratios
The correct answer is option 3. Activity ratios are calculated to measure the efficiency of the operation of a business by assessing how effectively the resources are being utilized in generating revenue. These ratios include inventory turnover, receivables turnover, and asset turnover.
Important Questions from Ratio analysis
Which ratios are calculated for measuring the efficiency of operation of business based on effective utilisation of resources?
Which of the following ratio is also termed as leverage ratio?
Which of the following formulae is INCORRECT?
Interest Coverage Ratio and proprietary ratio comes under:
Which of the following ratio is also termed as leverage ratio?
