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Ratios that are calculated for measuring the efficiency of operations of business based on effective utilisation of resources are known as ______. - Accountancy

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Question

Ratios that are calculated for measuring the efficiency of operations of business based on effective utilisation of resources are known as ______.

Options

  • Liquidity Ratios

  • Turnover Ratios

  • Solvency Ratios

  • Profitability Ratios

MCQ
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Solution

Ratios that are calculated for measuring the efficiency of operations of a business based on effective utilisation of resources are known as turnover ratios.

Explanation:

Turnover ratios are computed to assess the operational efficiency of a business by evaluating the effective use of its resources.

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Chapter 14: Ratio Analysis - OBJECTIVE TYPE QUESTIONS [Page 14.666]
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