Activity ratios analyze ________.
A) how well a company is making use of its assets
B) a firm's ability to pay its short-term obligations
C) a firm's ability to pay its long-term obligations
D) the leverage status of a company in question
E) the extent to which a business is financed by debt

Question

Quizplus · Accepted Answer

A)Activity ratios analyze how well a company is managing and making use of its assets. The inventory turnover ratio and accounts receivable turnover ratio are examples of activity ratios.
B)Activity ratios analyze how well a company is managing and making use of its assets. The inventory turnover ratio and accounts receivable turnover ratio are examples of activity ratios.
C)Activity ratios analyze how well a company is managing and making use of its assets. The inventory turnover ratio and accounts receivable turnover ratio are examples of activity ratios.
D)Activity ratios analyze how well a company is managing and making use of its assets. The inventory turnover ratio and accounts receivable turnover ratio are examples of activity ratios.
E)Activity ratios analyze how well a company is managing and making use of its assets. The inventory turnover ratio and accounts receivable turnover ratio are examples of activity ratios.

Activity Ratios Analyze ________