Which of the following is an example of an activity ratio?
A) inventory turnover ratio
B) acid-test ratio
C) debt-to-equity ratio
D) current ratio
E) debt-to-assets ratio

Question

Quizplus · Accepted Answer

A)Activity ratios analyze how well a company is managing and making use of its assets. The inventory turnover ratio, which measures how fast a company's inventory is turned into sales, is an example of an activity ratio.
B)Activity ratios analyze how well a company is managing and making use of its assets. The inventory turnover ratio, which measures how fast a company's inventory is turned into sales, is an example of an activity ratio.
C)Activity ratios analyze how well a company is managing and making use of its assets. The inventory turnover ratio, which measures how fast a company's inventory is turned into sales, is an example of an activity ratio.
D)Activity ratios analyze how well a company is managing and making use of its assets. The inventory turnover ratio, which measures how fast a company's inventory is turned into sales, is an example of an activity ratio.
E)Activity ratios analyze how well a company is managing and making use of its assets. The inventory turnover ratio, which measures how fast a company's inventory is turned into sales, is an example of an activity ratio.

Which of the Following Is an Example of an Activity