Accountancy Part BAccounting Ratios

"These ratios are calculated for measuring the efficiency of operatio…

"These ratios are calculated for measuring the efficiency of operation of business based on effective utilisation of resources."

Identify and choose the correct option.

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → Activity Ratios

NCERT (2026-27 edition):
Types of Ratios – “Activity (or Turnover) Ratios: This refers to the ratios that are calculated for measuring the efficiency of operations of business based on effective utilisation of resources. Hence, these are also known as ‘Efficiency Ratios’.”