Question : ---------------------ratios measure how well the facilities at the disposal of the concern are being utilized.
Option 1: Solvency ratio
Option 2: Liquidity ratio
Option 3: Activity ratio
Option 4: Profitability ratio
Correct Answer: Activity ratio
Solution : Answer = Activity ratio
Activity Ratio measures how well the facilities at the disposal of the concern are being utilised. These Ratios are Known as the Turnover Ratio. It assesses the efficiency of utilising resources by measuring turnover, such as inventory, assets, and accounts receivable, to evaluate how effectively a company's assets are being employed to generate revenue. Hence, the correct option is 3.
Question : The following groups of ratios primarily measure risk:
Option 1: Liquidity, activity and profitability
Option 2: Liquidity, activity and debt
Option 3: Liquidity, debt and profitability
Option 4: Liquidity, activity and common stock
Question : The working capital ratio is part of __________ ratio?
Option 1: Solvency Ratio
Option 2: Profitability Ratio
Option 3: Activity Ratio
Option 4: Liquidity Ratio
Question : Where is the Debt Equity Ratio covered?
Option 1: Liquidity Ratio
Option 2: Activity Ratio
Option 3: Operating Ratio
Option 4: Solvency Ratios
Question : Which of the following ratio is the "Current Ratio"?
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