Question : Which of the following statements is false with respect to the Activity ratio?
Option 1: These ratios are known as turnover ratios.
Option 2: These ratios measure the efficiency and rapidity of the resources of the Company.
Option 3: These ratios are generally calculated on the basis of revenue from operations or cost of revenue from operations.
Option 4: None of the above
Correct Answer: None of the above
Solution : Answer - None of the above
All of these statements are true with respect to the Turnover Ratio . Activity ratios are known as turnover ratios and measure the efficiency of a company's resource utilization. These ratios assess the efficiency and speed of resource utilization based on revenue from operations or the cost of revenue from operations. Hence, the correct option is 4.
Question : Assertion (A): Activity ratios are calculated for measuring the efficiency of operations of a business based on the effective utilization of resources. Reason (R): The current ratio, Quick ratio, asset turnover ratio, inventory ratio, account receivables turnover, etc
Question : Which of the following statements are false with respect of Net profit ratio?
Question : Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Activity Ratios are the ratios that are calculated for measuring the efficiency of operations of business
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