Activity ratios are used to determine the amount of sales for the year.

Name: Activity ratios are used to determine the amount of sales for the year.
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Question

Quizplus · Accepted Answer

Activity ratios are ratios used to evaluate how effectively a company is using its assets to generate revenue, rather than to directly determine the amount of sales for the year. Examples of activity ratios include inventory turnover, accounts receivable turnover, and total asset turnover.

Activity Ratios Are Used to Determine the Amount of Sales