General Studies · Activity Ratios
Consider the following statements regarding Activity (Turnover) Ratios in financial analysis: A. These ratios measure the efficiency with which a firm utilizes its assets to generate revenue. B. A higher turnover ratio generally signals better asset management and more effective resource utilization. C. Low turnover ratios indicate that a firm may have idle or slow-moving resources. D. Capital-intensive industries, such as steel or cement, typically report higher asset turnover than service firms. Choose the most appropriate answer from the options given below:
- 1A, B and D Only
- 2B, C and D Only
- 3A and D Only
- 4A, B and C Only✓
Correct answer
A, B and C Only
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