Question : To know how efficiently the working capital and inventory are being used to obtain revenue from the operation which ratio helps to know this?
Option 1: Activity Ratio
Option 2: Liquidity Ratio
Option 3: Solvency Ratio
Option 4: Profitability Ratio

Question

Question : To know how efficiently the working capital and inventory are being used to obtain revenue from the operation which ratio helps to know this?

Option 1: Activity Ratio

Option 2: Liquidity Ratio

Option 3: Solvency Ratio

Option 4: Profitability Ratio

Team Careers360 · Accepted Answer

Correct Answer: Activity Ratio

Solution : Activity Ratio helps to know how efficiently the working capital and inventory are being used to obtain revenue from the operation.
Hence, the correct option is 1.

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Question : To know how efficiently the working capital and inventory are being used to obtain revenue from the operation which ratio helps to know this?Option 1: Activity RatioOption 2: Liquidity RatioOption 3: Solvency RatioOption 4: Profitability Ratio

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Question : To know how efficiently the working capital and inventory are being used to obtain revenue from the operation which ratio helps to know this?
Option 1: Activity Ratio
Option 2: Liquidity Ratio
Option 3: Solvency Ratio
Option 4: Profitability Ratio