Q BankQuestion BankDocsDocuments

7.4. Liquidity ratios

Syllabus
0264–2027–2028
Topic
7.4
Level
—

7.4.1—Current ratio

  • Current ratio = Current assets : current liabilities, or current assets / current liabilities. Answer can be presented as a ratio : 1 or as a number.

7.4.2—Acid test ratio

  • Acid test ratio = Current assets - inventory : current liabilities, or (current assets - inventory) / current liabilities. Answer can be presented as a ratio : 1 or as a number.

Objective notes

2 learning objectives
ConceptIGCSE Business Studies