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Introduction to activity ratio
Activity ratio is known as the necessary factor that is useful in monitoring the function of a firm on the basis of its monetary or assets. It is helpful in deterring the differences with other companies and to know its influence on other company. Through this we can easily calculate the profit or achievement of a firm. To know about the income recovery by a company for every available resource, asset or finance that they have given on lease or on sale.
Logical reasoning, operation research, mathematics is the basic concepts of activity ratio where it actually works and these are all analytical approach to the same. There is no limit of study for these concepts as they cover vast area for study…economics students also study about activity ratio as it is also part of it consist of monetary interpretation.
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