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CAIE IGCSE Business Studies 7.4.1 current ratio

Practise current-ratio questions by dividing current assets by current liabilities and presenting the result correctly for marks.

Syllabus
2027–2029
Course
Business 0264

Exam points

  • Use current assets divided by current liabilities to calculate the current ratio.
  • Show working such as 120000÷150000 before writing the final answer clearly.
  • Present the result as a ratio to 1 or as a number, such as 1.25:1 or 1.25.

7.4.1—Current ratio question 1

[Maximum number: 2]

WFT is a primary sector business which harvests timber (wood) from trees. The Operations Manager knows there are many legal controls over business activity affecting the environment. WFT has 30 employees and uses a lot of technology to process the timber. The business is always considering ways to increase added value. WFT often needs finance. An extract from WFT's statement of financial position is shown in Table 1.1.

Table 1.1

Table 1.1

Calculate WFT's current ratio in 2024. Show your working.

Working:

Final answer:

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