Q18
The measure of how efficiently the assets resources are employed by the firm is called
A.
Liquidity ratio
B.
Leverage ratio
C.
Activity ratio
AnswerD.
Profitability ratio
Answer: Option C
Solution
Answer: Option C
Solution:
The measure of how efficiently the assets resources are employed by the firm is called Activity ratio. Activity ratios are a category of financial ratios that measure a firm's ability to convert different accounts within its balance sheets into cash or sales.