Efficiency Ratios: Types & Formula


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question 1 of 3

Efficiency ratios determine _____.

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1. Identify the best explanation for assets.

2. Wayne Company Ltd. makes and sells block-notes. The previous year, Wayne Company Ltd. sold 2000 block-notes at $1.50. The inventory on Jan 1 was $500 and $700 at year end. Calculate the inventory turnover ratio.

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About This Quiz & Worksheet

This quiz/worksheet combo help test your understanding of assets and efficiency ratios. You will need to know different efficiency ratios in order to pass the quiz.

Quiz & Worksheet Goals

This quiz and worksheet combo helps you review:

  • Asset turnover ratio
  • The days sales in inventory
  • Inventory ratio
  • Assets

Skills Practiced

This quiz and worksheet can help you practice these skills:

  • Information recall - access the knowledge you have gained regarding examples of assets
  • Reading comprehension - ensure that you draw the most important information from the related lesson on efficiency ratios
  • Knowledge application - use your knowledge to answer questions about the days sales in inventory

Additional Learning

To learn more about efficiency ratios, review the lesson called Efficiency Ratios: Types & Formulas. This lesson will help you with these objectives:

  • Determine what efficiency ratios are
  • Identify how the inventory ratio is calculated
  • Understand what the asset turnover ratio shows us
  • Review days sales in inventory