Activity Ratios: Definition, Formula & Analysis

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

When are fixed assets converted into cash?

Start Your Free Trial To Take This Quiz

As a member, you'll also get unlimited access to over 70,000 lessons in math, English, science, history, and more. Plus, get practice tests, quizzes, and personalized coaching to help you succeed.

Free 5-day trial
It only takes a few minutes to set up and you can cancel at any time.
Already registered? Login here for access

1. Which of the following is not an activity ratio?

2. Which ratio is not used to determine how efficient a business is at converting its current assets into cash?

Start your free trial to access this entire page
A premium account gives you access to all lesson, practice exams, quizzes & worksheets
Access to all video lessons
Quizzes, practice exams & worksheets
Certificate of Completion
Access to instructors
Create an account to get started Create Account

About This Quiz & Worksheet

You can easily gauge your knowledge of what activity ratios are and their calculations by using this quiz and worksheet assessment tool. To do well on this quiz, you must be able to identify activity ratios and what they are used to calculate.

Quiz & Worksheet Goals

Use this quiz to quickly determine your ability to:

  • State when fixed assets are converted into cash
  • List examples of activity ratios
  • Identify activity ratios used to determine the efficiency of a business to convert current assets into cash
  • Recognize which activity ratio the inventory turnover ratio calculates
  • Name the activity ratio that uses accounts receivable on its calculation

Skills Practiced

  • Reading comprehension - ensure that you draw the most important information from the lesson, such as what represents activity ratios
  • Information recall - access the knowledge you've gained regarding the inventory turnover ratio
  • Knowledge application - use your knowledge to answer questions about the conversion of fixed assets into cash and an activity ratio that uses accounts receivable for its calculation

Additional Learning

You can expand your knowledge of this topic by reviewing the lesson titled Activity Ratios: Definition, Formula & Analysis. You can gain more insight into:

  • How activity ratios are defined
  • How assets are classified and what exemplifies each classification
  • What information is gleaned from the fixed asset turnover ratio
Support