What is Activity Ratio? Financial Ratios that measure a firm's ability to convert different accounts into a balance sheet. Ratios that measure a company's ability to pay debt obligations and its margin of safety. Financial measurements that assess the ability of a company to meet its financial obligations The ratio that evaluates the company's ability to generate income as compared to its expenses.

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 34MCQ: Which of the following ratios is used to measure a firms profitability? a. Liabilities Ă· Equity c....
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What is Activity Ratio?

  1. Financial Ratios that measure a firm's ability to convert different accounts into a balance sheet.
  2. Ratios that measure a company's ability to pay debt obligations and its margin of safety.
  3. Financial measurements that assess the ability of a company to meet its financial obligations
  4. The ratio that evaluates the company's ability to generate income as compared to its expenses. 
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