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
Answer (1)
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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