The measure of how efficiently the assets resources are employed by the firm is called

  1. Liquidity ratio
  2. Leverage ratio
  3. Activity ratio 
  4. Profitability ratio  

Accounting Mcqs Solution

The measure of how efficiently the assets resources are employed by the firm is called Activity ratio. Activity ratios are a category of financial ratios that measure a firm’s ability to convert different accounts within its balance sheets into cash or sales.

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