Activity ratios measures ______ performance with respect to the key activities defined by management
A) external performance
B) internal performance
C) competitor performance
D) sales performance

Question

Quizplus · Accepted Answer

Activity ratios are used to assess a company's internal operational efficiency and effectiveness. These ratios measure how efficiently a company uses its assets to generate revenue or cash flow. Therefore, option B is the best choice as it relates to internal performance. Options A, C, and D do not accurately describe activity ratios.

Activity Ratios Measures ______ Performance with Respect to the Key