The ratios that measure the speed with which various accounts are converted into sales or cash and that are used to measure the efficiency of asset usage are known as
A) Liquidity ratios
B) Activity ratios
C) Leverage ratios
D) Profitability ratios

Question

Quizplus · Accepted Answer

Activity ratios measure the efficiency of asset usage by calculating how quickly various accounts are converted into sales or cash.

The Ratios That Measure the Speed with Which Various Accounts