Question : To know how efficiently the working capital and inventory are being used to obtain revenue from the operation which ratio helps to know this?
Option 1: Activity Ratio
Option 2: Liquidity Ratio
Option 3: Solvency Ratio
Option 4: Profitability Ratio
Correct Answer: Activity Ratio
Solution : Activity Ratio helps to know how efficiently the working capital and inventory are being used to obtain revenue from the operation. Hence, the correct option is 1.
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 : Which of the following ratio is the "Current Ratio"?
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
Question : Which ratio helps to know whether the profits of a firm are increasing or decreasing and if decreasing, the cause of their decrease?
Option 1: Turnover ratio
Option 2: Solvency Ratio
Option 3: Profitability Ratio
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile