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Question : Read the following information carefully and answer the question

 

Particulars

 

Revenue from Operations

8,75,000

Creditors

90,000

Bills Receivable

48,000

Bills Payable

52,000

Purchases

4,20,000

Trade Debtors

59,000

Q. Trade Receivables Turnover Ratio and Trade Payables Turnover Ratio are categorised as:

Option 1: Liquidity Ratio

 

Option 2: Solvency Ratio

Option 3: Activity Ratio

Option 4: Profitability Ratio


Team Careers360 25th Jan, 2024
Answer (1)
Team Careers360 26th Jan, 2024

Correct Answer: Activity Ratio


Solution : Activity ratios are a useful tool for assessing how well an organization uses its resources to produce income and cash.

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