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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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