Final answer:
Efficiency or activity ratios are used to determine how well a firm uses its assets to generate sales, including inventory turnover and total asset turnover.
Step-by-step explanation:
The ratios which help determine how efficiently a firm is using its assets to generate sales are called efficiency ratios or activity ratios. These include ratios like the inventory turnover, receivables turnover, and the total asset turnover. These metrics are essential in assessing how well a company is utilizing its assets to produce revenue and are a key part of financial analysis in business management and investment decisions.