Which ratio would be considered an activity ratio?
A) Debt-to-equity
B) Net profit margin
C) Average collection period
D) Earnings per share
E) Current ratio

Name: Which ratio would be considered an activity ratio? A) Debt-to-equity B) Net profit margin C) Average collection period D) Earnings per share E) Current ratio
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Question

Quizplus · Accepted Answer

The average collection period is an activity ratio that measures how efficiently a company manages its receivables and collects payments from customers.

Which Ratio Would Be Considered an Activity Ratio