Which type of financial ratio would be most appropriate for measuring how effectively a firm uses its plants,equipment,and assets?

A) debt
B) activity
C) liquidity
D) profitability

Activity ratios (also known as asset utilization ratios) are designed to measure how effectively a company uses its assets to generate revenue. This would include its plants, equipment, and other assets. Examples of activity ratios include inventory turnover, asset turnover, and accounts receivable turnover.