Which ratios are calculated for measuring the efficiency of operation
Right Answer is: C
• Liquidity ratios-These ration shows whether company’s Current Assets are sufficient to meet company’s short term obligations.
• Solvency ratios- These ration shows extent to which assets cover commitments for future payment obligations.
• Activity ratios- these ratios are calculated for measuring the efficiency of Operation of business based on effective utilisation of resources
• Profitability ratios-These ration measures profitability of a firm.