The Activity Ratio Measures Internal Performance with Respect to Key

question 41

True/False

The activity ratio measures internal performance with respect to key activities defined by management.

---

Definitions:

Quarterly

Occurring or done every three months.

Compounded

A method of calculating interest where previously earned interest is added to the principal amount, and then future interest is calculated on the new total.

Quarterly

Occurring every three months or four times a year.

Annuity

An investment vehicle that provides a consistent series of disbursements to a person, often employed in retirement planning.