A(n) ________ ratio evaluates management's use of assets.
A) financial
B) solvency
C) activity
D) profitability
E) liability

Question

Quizplus · Accepted Answer

Activity ratios measure how efficiently a company is using its assets to generate revenue or cash flow. Therefore, activity ratios evaluate management's use of assets. Options A, B, D, and E evaluate different aspects such as profitability, solvency, financial health, and liability.

A(n) ________ Ratio Evaluates Management's Use of Assets