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Choose the appropriate alternative from the given options: Which of the following is not an activity ratio? - Accountancy

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MCQ

Choose the appropriate alternative from the given options:

Which of the following is not an activity ratio?

Options

  • Inventory turnover ratio

  • Interest coverage ratio

  • Working capital turnover ratio

  • Trade receivables turnover ratio

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Solution

Interest coverage ratio.

Explanation:

Interest Coverage ratio is a solvency Ratio and not an Activity Ratio. Hence, the correct answer is Interest Coverage ratio.

Concept: Activity Ratios - Inventory Turnover Ratio
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