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State true or false with reasons.Activity ratios and Turnover ratios are the same. |
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Answer» This statement is True. Turnover ratio is an efficiency ratio to check how efficiently a company is using different assets to extract earnings from them. Activity ratios are financial analysis tools used to measure a business’s ability to convert its assets into cash. From both these definitions, we can say that Activity ratios and Turnover ratios are the same. |
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