Read the following information carefully and answer the question:Particulars₹Revenue from Operations Creditors Bills Receivable Bills Payable Purchases Trade Debtors Trade Receivables Turnover Ratio and Trade Payables Turnover Ratio are categorised as:
- ALiquidity Ratio
- BSolvency Ratio
- CActivity Ratio
- DProfitability Ratio
Solution & Step-by-step Explanation
Turnover ratios reflect how efficiently an asset or a liability category cycles through operational streams. Hence, Trade Receivables and Trade Payables Turnover ratios fall under the umbrella of Activity Ratios (also called Efficiency or Performance Ratios).