The ratios that measure the speed with which various accounts are converted into sales or cash and that are used to measure the efficiency of asset usage are known as ______.

A) liquidity ratios
B) activity ratios
C) leverage ratios
D) profitability ratios

Activity Ratios

Financial ratios that measure the speed with which various asset accounts are converted into sales or cash.

Asset Usage

Refers to how effectively a business utilizes its resources, including physical assets, to generate revenue or achieve its objectives.

Sales

Represent the transactions involving the exchange of goods or services for money, which are pivotal to the revenue generation of a company.