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    Question

    The ratio that measures the efficiency with which a firm

    utilizes its assets to generate sales is:
    A Liquidity Ratio Correct Answer Incorrect Answer
    B Leverage Ratio Correct Answer Incorrect Answer
    C Activity/Turnover Ratio Correct Answer Incorrect Answer
    D Profitability Ratio Correct Answer Incorrect Answer
    E Valuation Ratio Correct Answer Incorrect Answer

    Solution

    Activity or Turnover Ratios (like Inventory Turnover, Asset Turnover) specifically measure how efficiently a company uses its assets to generate sales revenue.

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