Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting Ratios

Question:
Activity ratios are also known as:
Options:
Turnover ratios
Efficiency ratios
Either option 1 or 2
Both option 1 and 2
Correct Answer:
Both option 1 and 2
Explanation:
Activity (or Turnover) Ratios: These 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’.