Which of the following classification of ratios reflects the speed with which resources are converted to cash or sales?
A) leverage
B) equity
C) activity
D) profitability

Question

Quizplus · Accepted Answer

Activity ratios, also known as efficiency ratios, measure how efficiently a company is using its assets to generate revenue. These ratios measure the speed with which resources are converted into sales, cash or receivables.

Which of the Following Classification of Ratios Reflects the Speed