A(n)________ ratio evaluates management's use of resources.
A) financial
B) solvency
C) activity
D) profitability

Question

Quizplus · Accepted Answer

The activity ratio evaluates management's use of resources, specifically how efficiently assets are being used to generate revenue. Financial ratios focus on financial statements like balance sheets and income statements, solvency ratios evaluate a company's ability to meet long-term obligations, and profitability ratios evaluate a company's ability to generate profits.

A(n)________ Ratio Evaluates Management's Use of Resources