Question

A firm's efficient use of its assets in running the business is key to maintaining sufficient cash flow. Ratios that accountants utilize to measure the efficient use of assets are called ____________ ratios.

Answer 1

Answer:

activity ratios

Explanation:

Activity ratios -

Activity ratios are also known as efficiency ratios in common words .

This ratio helps to generalize the financial ratios which determine or  measures the ability of the firm to convert various accounts from the balance sheet into cash or sales , is known as the activity ratios .

It helps to determine if the company is doing good or not , by the help of assets and leverage .