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9 questions
The efficiency ratio is used to analyze the _________ use of assets and liabilities in a company.
internal
external
What can efficiency ratios calculate?
Turnover of receivables
Repayment of liabilities
Fixed costs and expenses
Quantity and usage of equity
Which is NOT a type of efficiency ratio?
Debtor days
Stock turnover
Asset turnover
Creditor turnover
Asset turnover takes account of how profitable the revenue is.
True
False
Stock turnover shows how many times the business has sold the value of its _______ during the year.
stocks
debts
expenses
Which efficiency ratio shows the average number of days a business takes to pay suppliers?
Asset turnover
Creditor days
Stock turnover
Debtor days
Debtor days measures the number of days it takes a firm to collect money from its _________.
debtors
investors
lenders
Efficiency ratios may not be in the ___________ interests of a business.
long-term
short-term
Efficiency ratios are really useful for investors and lenders.
True
False
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