Activity Ratios Measure

question 70

Multiple Choice

Activity ratios measure

• A) how rapidly assets flow through the firm
• B) how frequently the firm's stock is traded
• C) how rapidly employees turn over
• D) the profitableness of accounts receivable

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Definitions:

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenue and expenses to show net income or loss.

Revenues

The income generated from normal business operations and includes discounts and deductions for returned merchandise.

Expenses

Outflows of resources or incurrences of liabilities that result in a decrease in the equity of a company, other than distributions to owners.

Accounts Receivable

Money owed to a company by its customers for goods or services provided on credit.